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Get real. Those are Sierra Pacific Resources Corp.’s words for an Enron Corp. unit that wants $336 million for power it never delivered. The Nevada energy company on Monday asked the Federal Energy Regulatory Commission to block Enron Power Marketing Inc. from collecting the money on a contract it signed, but never intends to fulfill. In August, Judge Arthur Gonzalez in the U.S. Bankruptcy Court for the Southern District of New York in Manhattan granted Enron’s motion for summary judgment for its claims on terminated contracts. This move allows the energy provider to demand immediate payment on pacts with Sierra Pacific. Sierra Pacific hopes FERC blocks Enron from obtaining a final judgment without the regulator reviewing the matter. The company added in a statement that forking over the payment to Enron would cause “great harm” to its utilities and customers if Enron gets this cash while the dispute is under appeal and under FERC review. Sierra Pacific said it expects the Nevada attorney general’s office to join the Nevada utilities in opposing Enron’s claims. The company said in its complaint that Enron failed to act reasonably when it purported to terminate the contracts. Sierra Pacific claims that Enron acted unreasonably because it had sold its marketing business and had no means of delivering the power mandated by the contract. Even if Enron is technically entitled to being paid, it’s neither equitable nor in the public interest to require the Nevada utilities to pay Enron the full $336 million, the company said. “The issues presented in this FERC case are clear,” Walter Higgins, Sierra Pacific’s chairman, said in a statement. “A company like Enron that engaged in pervasive wrongdoing should not be permitted to adroitly game the legal system so it can benefit from its criminal and regulatory misconduct.” Earlier this year, FERC determined that Enron had unlawfully manipulated the Western energy market, engaging in fraud, deception and other actions that created unjust and unreasonable power market prices. Sierra Pacific’s complaint is the third recent incident where an energy company has asked FERC to intervene in a dispute begun in a bankruptcy court. FERC got involved in disputes between bankrupt NRG Energy Inc., which sought to reject its contract with Connecticut Light & Power Co. In September, Pepco Holdings Inc. asked FERC for help in beating back a motion by bankrupt Mirant Corp. to terminate its contracts. Copyright �2003 TDD, LLC. All rights reserved.

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