Bankrupt energy company Enron Corp. has agreed to pay $47.5 million in cash in a settlement that could eventually top $1.5 billion to resolve claims that it gouged California and other western states during the 2000-2001 energy crisis.
In addition to the cash payment, Enron will provide California with an unsecured claim for $875 million in the energy company’s bankruptcy proceedings. Oregon and Washington would be entitled to $22.5 million each from that unsecured settlement. The settlement also calls for the company to pay a $600 million penalty to the three states.
