SEC Sets Hearings on Enron Corp. Applications for Exemptions Under the Public Utility Holding Company Act
FOR IMMEDIATE RELEASE
Washington, D.C., October 7, 2002 -- The Securities and Exchange Commission today announced that it will hold hearings on two applications by Enron Corp. for exemptions from the provisions of the Public Utility Holding Company Act of 1935. Enron currently operates under an exemption from the Act by operation of law as a result of the filing of the applications. The Commission has concluded that a hearing is required on the applications to determine whether Enron currently satisfies the statutory criteria for an exemption. If the Commission denies Enron's applications for exemption, the denial may affect certain beneficial treatment Enron receives under the regulations of the Federal Energy Regulatory Commission.
The Commission designated Commissioner Roel C. Campos, a former Assistant U.S. Attorney, to serve as hearing officer. Commissioner Campos will conduct the hearing in two phases. The first phase will address whether Enron satisfies the specific statutory criteria for the exemptions it seeks under Sections 3(a)(1), 3(a)(3) and 3(a)(5) of the Act. The second phase, if Commissioner Campos determines it to be necessary, will be to decide whether granting the exemption would be detrimental to the public interest or the interest of investors or consumers.
Chairman Harvey L. Pitt commented, "I am confident that the process we have put in place today to determine whether to grant an exemption will assure a speedy, but fair, resolution. The process will minimize the time during which the current exemption, triggered by the filing of the applications, continues in effect."
A copy of the order scheduling hearing is available on the SEC's Internet web site at http://www.sec.gov/rules/other/35-27574.htm.