Discussion

Events, plus other Commission decisions, have mooted all the questions posed in this investigation; therefore, it should be dismissed.

The cancellation of Enron's ESP registrations has resolved the question of protecting Enron's direct access customers. Enron Energy Marketing Corp has canceled its registration, as have Enron Energy Services and New Power Company. The Enron Corp. and affiliates' bankruptcy filing (Case No. 01-16034 (AJG), filed in the U.S. Bankruptcy Court for the Southern District of New York) has settled, or will settle all claims by California utilities and California ESP customers. (See, for example, Order Approving Settlement Agreement between Enron Energy Marketing Corp., Enron Energy Services, Inc., et al., and Pacific Gas and Electric Company in Case No. 01-16034 (AJG) dated April 20, 2004.)

This OII was driven by our concern to protect the interests of Enron's retail energy customers. The evidence presented at the hearing by Enron direct access customers provided detailed testimony regarding their concerns, especially their perceived need to continue on direct access and have their Enron contracts assigned to solvent ESPs. Those issues were resolved in D.01-09-060, which suspended direct access for electric customers; D.02-03-055 which, among other things, adopted an exemption to the suspension requirements of D.01-09-060 by permitting contract renewals and assignments whereby existing DA customers could choose a new ESP and continue on DA even if they had returned to bundled service; and D.03-05-034, which adopted rules to govern the switching exemption and set forth the concept of developing cost responsibility surcharges in lieu of an earlier DA suspension date.

The evidence shows, and we find, that the Enron financial collapse did not materially affect or interrupt electric and gas service3 to Enron's customers in California. The disruptions caused by the bankruptcy resulted in retail direct access billing disputes which were resolved by applicable tariff rules (e.g., Electric Rule 22 and Gas Rate Schedule G-CT) and some gas balancing service costs when direct access customers were returned to bundled service. All of the financial problems connected with customer service were resolved over time, either through customer-company negotiations, the Commission's Consumer Affairs Branch, or through the bankruptcy proceeding. In regard to customer service issues arising from the Enron bankruptcy, there is nothing left for this Commission to decide.

3 We reiterate that this OII is concerned only with customer service issues related to the Enron financial collapse and bankruptcy. Issues regarding market manipulation and financial improprieties are not part of this investigation.

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