Southern California Edison and other companies that sought refunds for energy overcharges during the state’s 2000-2001 energy crisis announced on July 15 that a settlement was reached to resolve claims against Enron Corporation and a number of its affiliates.

The power companies will receive refunds from Enron and some of its affiliates, but customers shouldn’t expect to see a check in the mail, according to Rudy Gonzales, Edison’s regional manager for the Conejo Valley.

The settlement calls for Enron Power Marketing Inc., the entity through which Enron conducted its power marketing operations in California, to make a one-time payment of $47.3 million. An unsecured claim of $875 million against the company was also made, but actual value and timing of the claim is uncertain because of the company’s bankruptcy status, Gonzales said. “It’s unlikely that the parties seeking refunds in California will receive all of the money— at this point the estimated value is 22.8 cents on the dollar—so it’s going to be significantly less than a quarter of the actual claim,” Gonzales said.

The money received will be used to offset future power generation costs. It won’t go back to customers as a one-time refund, Gonzales said, but the money will help prevent a rate increase in the future.

––Sylvie Belmond