Sierra Pacific Resources
received approval from the Federal Energy Regulatory Commission for its previously announced settlement agreement with Enron Power Marketing.
The FERC decision is the final step in the approval process and officially ends the long-standing dispute and litigation in which Enron claimed that it was owed more than $300 million for terminated contracts. The contracts related to Sierra Pacific's utility subsidiaries, Nevada Power and Sierra Pacific Power.
As previously announced by the company, Sierra had agreed to pay $129 million to settle Enron's claim of more than $300 million for payment on contracts that Enron terminated in 2002.
In turn, Enron agreed to provide and pay an unsecured claim of $126.5 million against its bankruptcy estate in settlement of the Nevada utilities' claims.
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