ALJ/RAB/tcg Mailed 8/25/2004

Decision 04-08-023 August 19, 2004

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Investigation into the operations and practices of companies affiliated with Enron Corporation, relating to the filing for Chapter 11 bankruptcy of Enron Corp. and its affiliated entities.

Investigation 01-12-008 (Filed December 11, 2001)

(See Appendix A for list of appearances.)

OPINION CLOSING THIS ORDER INSTITUTING INVESTIGATION

Summary

On December 11, 2001, we initiated this investigation into the financial and operational capabilities of Enron Energy Marketing Corp. (EEMC), Enron Energy Services, Inc. (EES), and The New Power Company (NPC) pursuant to Public Utilities Code Sections 701, 394.25(b)(3) and other applicable authorities.¹ The purpose of the investigation was to gather facts to help the Commission assess the effects, if any, of those entities' financial status on their customers and on other customers in California. Named respondents in the investigation were Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), San Diego Gas and Electric Company (SDG&E), Southern California Gas Company (SoCalGas), EEMC, EES, and NPC. Following a prehearing conference on December 20, 2001, the Assigned Commissioner issued a scoping memorandum which set forth issues to be addressed at hearing.

Hearings were held in January 2002, briefs were filed, and the matter submitted March 2002. This OII has been held open pending resolution of the Enron bankruptcy and the status of the Enron Electric Service Providers (ESPs). That bankruptcy has proceeded sufficiently to assure that its resolution will not impact this investigation. All Enron ESPs have had their registrations canceled. We emphasize that this OII is concerned only with customer service issues related to Enron's financial collapse and bankruptcy. Issues related to market manipulation and financial impropriety are not part of this investigation.