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ENRON AND CAJUN LABOR UNIONS REACH AGREEMENT
FOR IMMEDIATE RELEASE: Tuesday, March 10, 1998
HOUSTON -- Enron Capital & Trade Resources Corp. (ECT), a subsidiary of Enron Corp., announced today that it has signed labor agreements with the International Brotherhood of Electrical Workers and the United Steelworkers Union, the two legally recognized bargaining units of the bankrupt Cajun Electric Power Cooperative. The agreements provide job protection for union members and give ECT enhanced flexibility in it potential operation of the Cajun assets.
The labor agreements are contingent upon the joint reorganization plan of ECT and the Official Committee of Unsecured Creditors of Cajun being confirmed by the bankruptcy court and ECT's acquisition of Cajun's generation assets.
"Reaching agreement with the Cajun unions represents a significant milestone in the resolution of the Cajun bankruptcy," said Kenneth D. Rice, chairman and CEO of ECT-North America. "The level of job protection that we are offering Cajun's employees exceeds what other bidders are providing and the agreements we have reached with the unions will enhance our ability to successfully operate Cajun's assets. We believe that these labor union agreements, combined with the endorsement of the Rural Utilities Service, make Enron's proposal the highest value proposal for all parties."
Last fall, the Louisiana Public Service Commission found ECT's 15-year wholesale rate offer for Cajun member cooperatives to be reasonable. Since then, ECT was able to lower its proposed rates further by agreeing to assume financial responsibility for operation and maintenance of distribution facilities owned by Cajun or co-owned by Cajun and the member cooperatives. ECT has reached agreement with Cajun's largest creditors, including the Rural Utilities Service.
Enron is the world's leading integrated natural gas and electricity company. The company owns approximately $23 billion in energy related assets and delivers physical commodities and risk management and financial services to provide energy solutions to customers around the world. Enron's internet address is www.enron.com, and the stock is traded under the ticker symbol, "ENE."
For additional information please contact:
Shelly Mansfield
(713) 853-4589
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