Connecticut may recoup Enron losses, but not so employees

The Hour, Norwalk, Conn.--Jul. 22

Jul. 22--There's good news that the state of Connecticut might actually get back some of the money it lost when Enron, the energy giant, went belly up. The state took a bath of $220 million, and it hopes to recoup $80 million to $90 million after lengthy negotiations between the attorney general's staff and Enron.

While we'd like to see the state get it all back, the proposed repayments are, as they say, better than a sharp stick in the eye.

We are of a mind to agree that the loss by the Connecticut Resources Recovery Authority (CRRA), was not just a bad business deal but was in reality an illegal loan. You may recall that the deal between CRRA and Enron was concocted by among others, Peter Ellef, former CRRA chairman and once co-chief of staff for former Gov. John G. Rowland.

While the bankruptcy plan may be approved by the judge, the deal is still the subject of a federal investigation. We hope that it is pursued diligently.

If indeed the amount that the state may get back stands up, the residents of Connecticut, whose tax dollars, after all, were "loaned" to Enron, will fare better than the thousands of stockholders and employees who saw their holdings and pension plans go up in smoke.

There is one unsettling note in the proposed settlement -- some of the money owed Connecticut may come in the form of Enron stock.

Now that's scary.

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