The battle is being closely watched around the country. Pennsylvania is one of the first states to introduce competition in electricity sales, and Enron's bold maneuver raises the stakes considerably, not just for Enron and Peco, but also for consumers, investors, utility workers, environmentalists and others who stand to gain or lose as deregulation spreads. That intense focus is a far cry from what seemed likely before last week, when a process that began a year ago with passage of an electricity-competition law appeared to be heading toward a tidy conclusion. Peco and consumer advocates had reached a deal in August that promised customers an array of benefits, including a 10 percent rate cut at the start of competition. Though there were some significant naysayers, many observers predicted that the deal eventually would be endorsed by the state Public Utility Commission.
Nothing is quite so clear anymore.
Enron would not do this for nothing, of course. In return, the Houston company would get an order from the PUC placing it at the center of the region's electricity business. Peco wouldn't disappear. McNeill also signaled Peco's intention to play hardball politics. The negotiators who signed the August settlement on behalf of Peco's customers were clearly caught by surprise by Enron's proposal.