Opinion
Case No. 03-30459 (PM) and 03-30461 (PM) through 03-30464 (PM) and 03-30686 (PM) through 03-30687 (PM), Jointly Administered under Case No. 03-30459 (PM).
September 27, 2005
Steven Wilamowsky, WILKIE FARR GALLAGHER LLP, New York, NY, and Dennis J. Schaffer, Paul M. Nussbaum, Bar No. 04394, Martin T. Fletcher, Bar No. 07608, Dennis J. Shaffer, Bar No. 25680, WHITEFORD, TAYLOR PRESTON LLP, Baltimore, Maryland, Counsel for the Debtors.
Howard J. Weg, Thomas G. Kelch, PEITZMAN, WEG KEMPINSKY LLP, Los Angeles, California, and Alan M. Grochal, Bar No. 01447, Matthew C. Brown, Bar No. 27152, Tydings and Rosenberg, LLP, Baltimore, Maryland, Counsel to the California Power Exchange Corporation.
This Stipulation and Consent Order (this "Stipulation") is entered into by and between the California Power Exchange Corporation ("CalPX") and NEGT Energy Trading — Power, L.P. ("ET Power"), one of the debtors in the above-entitled cases. This Stipulation is based on the following:
WHEREAS, on January 8, 2004, CalPX filed a claim in an unliquidated amount, designated Claim No. 346, against ET Power based on potential liability of ET Power to CalPX related to ET Power's participation in the California energy markets (hereafter "Claim No. 346"). On August 30, 2005, ET Power filed its Objection to Claim Filed by California Power Exchange Corporation (Claim No. 346), to meet the August 30, 2005 claim objection deadline set forth in the confirmed ET/Quantum Plan of Reorganization.
WHEREAS, on May 31, 2005, CalPX filed its Request of California Power Exchange Corporation for Allowance of Administrative Expense Claim Pursuant to Sections 503(a) 503(b) and 507(a) of the Bankruptcy Code (the "Administrative Claim") relating to costs and expenses of CalPX attributable to ET Power. On June 16, 2005, ET Power filed its Objection to Application of California Power Exchange Corporation for Allowance of Administrative Expense Claim.
WHEREAS, the parties anticipate that resolution and payment of the amounts claimed by CalPX in Claim 346 and the Administrative Claim will take place in connection with proceedings pending before the Federal Energy Regulatory Commission ("FERC") relating to (1) the determination of how much, if any, unpaid sellers, including ET Power, will be paid for energy bought and sold in the energy markets formerly administered by CalPX prior to February 2001 (the "California Refund Proceedings") and (2) the proposed settlement among CalPX and its participants, including ET Power, with respect to the allocation of CalPX's costs and expenses (the "CalPX Settlement Agreement").
WHEREAS, on or about July 29, 2005, as part of the CalPX Settlement Agreement, CalPX and ET Power entered into a letter agreement (the "Letter Agreement") that provided, among other things, that ET Power would establish a $150,000 reserve for the claims of CalPX and that ET Power would not object to or proceed with an objection to any claims of CalPX until after December 31, 2005, and after that date would not proceed without following certain notice procedures. A copy of the Letter Agreement is attached hereto and is subject to approval by the FERC and this Court.
WHEREAS, on September 1, 2005, CalPX filed with FERC and served on market participants the CalPX Settlement Agreement, which includes the Letter Agreement. On September 6, 2005, ET Power filed with this Court and served on parties in interest the CalPX Settlement Agreement, which includes the Letter Agreement. The hearing on the CalPX Settlement Agreement and the Letter Agreement is currently set for September 29, 2005.
WHEREAS, to avoid litigation over Claim 346 and the Administrative Claim that may ultimately prove entirely unnecessary, this stipulation is entered into for the purpose of extending the time for CalPX to respond to ET Power's objections to Claim 346 and the Administrative Claim, and delaying any further status conferences or hearings on these claims.
THEREFORE, it is hereby stipulated and agreed by and among the parties hereto, and ORDERED by the Court, as follows:
1. CalPX shall not be required to respond to ET Power's objections to Claim No. 346 or the Administrative Claim until March 1, 2006, or such later date as agreed by the parties or ordered by the Court.
2. The status conference on Claim 346 set for December 15, 2005, and the hearing on the Administrative Claim set for October 18, 2005, shall be taken off the Court's calendar and may be reset for hearing not earlier than 20 days after the response date set in paragraph 1 above.SO ORDERED.