The settlement will end market manipulation and price-gouging claims against the once high-flying Houston-based company, California Attorney General Bill Lockyer said. The agreement requires approval by the Federal Energy Regulatory Commission.
Enron will pay $47.5 million in cash and provide California with an unsecured claim for $875 million in the energy company's bankruptcy proceedings. Oregon and Washington will recieve $22.5 million each from that unsecured settlement.
In addition, the three states will share a $600 million penalty.
The deal will allow California to "squeeze justice from this corporate turnip," Lockyer said. "All things considered, this is a good resolution for the state's ratepayers."
Enron's ultimate payments to the states won't be known until its bankruptcy proceedings end, Lockyer spokesman Tom Dresslar said.