CNN
February 17, 2000
 
 
Texas utility threatens to close plant in Dominican Republic

                   SANTO DOMINGO, Dominican Republic (AP) -- After weeks of power
                   shortages that have caused blackouts lasting up to eight hours a day, the
                   largest power generating company in the Dominican Republic warned the
                   government it could shut down its plant.

                   Officials with the Houston-based Smith and Enron said Thursday they would
                   act if the government does not pay its $29 million debt in nine days.

                   The state electricity superintendent, Marcus Cochon, said the government
                   would be able to pay only a little more than a third of the $102 million that it
                   owes to Smith and Enron and another seven companies.

                   "At this time, the government has only been able to identify $40 million, but
                   that's definite," Cochon said. "That's about 3 percent of our annual national
                   budget. They have to understand that we can't pay more than that in six
                   months."

                   But Smith and Enron's executive director, Kevin Manning, said he wrote to
                   government officials earlier this week advising them that the company could
                   shut down the plant for nonpayment.

                   "I hope next week to be back into negotiations with the government to find a
                   solution to this problem without the need to suspend service in the plant,"
                   Manning said. "There's no way we want to take the plant off-line."

                   Government officials said they are doing the best they can to come up with
                   the money. The government paid $13 million this week and plans to pay
                   another $3 million next Wednesday.

                   Those that can afford it in Dominican Republic, including large hotels and
                   companies operating in a duty-free zone, have built their own power plants
                   and never use the national grid, or have generators running during power
                   cuts.

                    Copyright 2000 The Associated Press.