Exhibit 99.1
Mark A. Palmer
713-853-4738
ENRON COMMENCES AUCTION PROCESS
TO MAXIMIZE VALUE OF CORE ASSETS
FOR IMMEDIATE RELEASE: Tuesday, Aug. 27, 2002
HOUSTON - Consistent with a plan outlined in May to maximize the value
of its core assets, Enron Corp. announced today that it has commenced a formal
sales process for its interests in certain major assets. The company is
extending invitations to visit electronic data rooms containing information on
12 of Enron's most valuable businesses to a broad universe of potential bidders
with whom the company has executed confidentiality agreements.
"This process continues our efforts to maximize value and enhance
recovery for our creditors," said Stephen Cooper, Enron's interim CEO and chief
restructuring officer. "Enron and its advisors, in consultation with the
Unsecured Creditors' Committee and its advisors, will evaluate all offers
received to determine the combination of bids that maximizes the value of all
assets."
The company has established a timetable that would result in reaching
final decisions and making necessary Bankruptcy Court filings on such asset
dispositions in December 2002. Consistent with that timetable, Enron and its
advisors envision initial indications of interest will be due in October, with
final bids due in November 2002. Enron reserves the right not to sell any of its
assets if the bids received are not deemed fully reflective of the assets'
value.
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Exhibit 99.1
The 12 assets, or interests in assets, include:
PORTLAND GENERAL
Portland General Electric is a fully integrated electric utility
serving more than 740,000 retail customers in northwest Oregon.
Contrary to local political concerns raised in the past weeks, Enron
will only sell the entity in its current structure as a fully
integrated electric utility.
TRANSWESTERN
Transwestern Pipeline Company is principally comprised of a 2,600-mile
natural gas pipeline extending from west Texas to California.
CITRUS
Enron owns a 50 percent interest in Citrus Corp., which is the holding
company for Florida Gas Transmission Company, comprised principally of
a 5,000-mile natural gas pipeline system extending from south Texas to
south Florida.
NORTHERN PLAINS
Enron's wholly-owned subsidiary Northern Plains Natural Gas Company
owns a 1.65 percent general partner interest, and approximately 500,000
limited partner units, in Northern Border Partners, L.P., a limited
partnership publicly traded on the NYSE. Northern Border's principal
business segment is interstate natural gas pipelines, which include a
70 percent interest in Northern Border Pipeline, an approximately
1,250-mile natural gas pipeline extending from Canada to the midwestern
United States, and Midwestern Gas Transmission Company.
ELEKTRO
Elektro Electricidade e Servicos S.A. is a local electricity
distribution company in Sao Paulo state, Brazil that serves more than
1.7 million customers.
CUIABA
Cuiaba is an integrated energy project comprised of a 480-megawatt
natural gas-fired power plant in the State of Mato Grosso, Brazil, two
natural gas pipelines that transport natural gas from eastern Bolivia
through western Brazil directly to the plant, and two gas supply
companies that supply natural gas to the power plant. Enron owns
various controlling or co-controlling interests in the project
companies.
BOLIVIA TO BRAZIL PIPELINE/TRANSREDES
The Bolivia to Brazil Pipeline system is comprised of Gas
TransBoliviano, S.A. and Transportadora Brasileira Gasoduto
Bolivia-Brazil S.A., South America's longest intercountry natural gas
pipeline. Transredes owns more than 3,400 miles of liquid hydrocarbon
and natural gas pipelines that gather and transport products within
Bolivia.
SITHE
Enron owns a 40 percent equity interest in and a subordinated note from
Sithe/Independence Power Partners, LP, the principal asset of which is
a 1,042-megawatt cogeneration power plant located in Scriba, New York.
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Exhibit 99.1
ECO-ELECTRICA
Enron owns an indirect 47.5 percent interest the Eco-Electrica Project,
a 542-megawatt cogeneration power plant, a 1 million barrel liquified
natural gas terminal, and a 2 million gallon per day water desalination
facility located in Penuelas, Puerto Rico.
MARINER
Enron indirectly owns 96 percent of Mariner, a domestic exploration and
production company primarily focused on the Gulf of Mexico, as well as
the Permian Basin. Mariner had proved reserves of 237 billion cubic
feet equivalent at year-end 2001, of which approximately 75 percent
were natural gas.
STADACONA
Compagnie Papiers Stadacona owns a 500,000 tons per year newsprint and
directory paper mill in Quebec City, Quebec. The company also owns
timberland assets in the vicinity of the plant and in Maine.
TRAKYA
Enron owns a 50 percent interest in the Trakya Project, a 478-megawatt
natural gas-fired power plant in Marmara Ereglisi, Turkey.
Enron may expand the group of assets included in this process under the
appropriate circumstances.
Enron has retained The Blackstone Group L.P. as its lead advisor with
respect to these sales and, for the Mariner asset, has retained Batchelder &
Partners, Inc. as co-advisor. Interested parties may contact Michael Hoffman,
Raffiq Nathoo, or Steve Zelin at The Blackstone Group L.P. at (212) 583-5000,
or, in the case of the Mariner asset, Joel Reed at Batchelder & Partners, Inc.
at (858) 704-3302.
Enron has significant electricity and natural gas assets in North and
South America. Enron's internet address is www.enron.com.
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