Delta College to Pay Enron: $142,000 Part of Agreement Over 2001's Bills
Posted on: Wednesday, 1 March 2006, 12:01 CST
By Yasmin Assemi, The Record, Stockton, Calif.
Mar. 1--STOCKTON - San Joaquin Delta College has agreed to pay Enron Energy Marketing Corp. nearly $142,000 under an agreement to settle a lawsuit over unpaid energy bills.
The college joins 35 other community college districts in paying for energy used in 2001, according to Delta College documents. In exchange, Enron dropped a lawsuit seeking breach of contract damages for extra costs incurred when the company folded.
Enron provided discounted electricity rates to schools participating in the Community College League's Electricity Consortium from 1999 through 2002. Enron terminated service in 2001, the same year the corporation filed for bankruptcy.
Enron's contract with the consortium, however, stipulated that electricity be provided through December 2009.
Delta College stopped paying Enron in late 2002 after the consortium filed claims against Enron for early termination of the electricity contracts. The college originally owed Enron $380,325 in unpaid electricity bills, but will pay less than half that amount under the settlement agreement.
"It was not a difficult decision" to settle, said Raul Rodriguez, president of Delta College. "By settling ... we're saving quite a bit of money."
The college has set aside money from its General Fund to pay Enron since 2002, said Claire Tyson, Delta College's finance director.
Enron officials couldn't be reached for comment.
Enron and community college representatives have been in settlement negotiations since 2004, and have nearly finalized the agreement. Delta College trustees voted unanimously Feb. 21 to authorize the settlement.
Constellation New Energy, Inc. has provided energy to Delta College and other consortium members since 2002, Tyson said.
Contact reporter Yasmin Assemi at (209) 546-8272 or yassemi@recordnet.com
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Source: The Record
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