Enron Corp., which helped push California's controversial power-deregulation bill through the Legislature five years ago and now is one of the state's largest energy providers, filed for Chapter 11 on Sunday. The Houston-based firm listed $50 billion in assets and $31 billion in liabilities, making Enron's filing the largest in history.
Enron's bankruptcy filing did not include billions of dollars more in debts from several different partnerships, many of which have soured. Until now, the largest bankruptcy in history was Texaco Inc., which claimed $36 billion in assets when it filed in 1987.
In California, Enron provides enough energy to power as many as 1 million commercial and residential properties a day. It also works as a broker, or middleman, to secure additional power for some utilities in the state.
Some experts worry that Enron's bankruptcy filing could disrupt California's energy pipeline, triggering a new round of power outages. Energy usage has already jumped in recent days due to unusually cold weather, the arrival of holiday lights on businesses and homes, and the longer hours that retailers are staying open for shoppers.
Enron's filing was widely expected after Dynergy, another Houston-based firm, called off its proposed acquisition of Enron on Nov. 28. In addition to its bankruptcy filing Sunday, Enron also filed a $10-billion suit against Dynergy for backing out of the deal.
Enron attorneys were expected to appear today in a court in New York, where it filed both its bankruptcy papers and its lawsuit against Dynergy. A spokesperson in the office of California Governor Gray Davis tells GlobeSt.com that the governor is reviewing the impact that Enron's filing may have in California and that Davis will publicly address the issue soon.
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