I agree that CPN is cheap P/E-wise, but I think there are other problems in addition to the unfounded "perceived associaton with Enron" that CashPhlo mentioned that caused the stock price to tubmle to current levels such as:
1. Too much debt: low credit ratings are limiting access to commercial paper and good rates, (see new stock issue below).
2. Uncertainty about CA contract, (but at least there's a renegotiated deal now...although I'm not familiar with terms).
Also to consider:
1. 69 mil additional shares being sold into the market. This would be great if they were putting it to work making more earnings but it will probably just bail out some of their debt and will only reduce EPS and push their P/E up thereby reducing its bargain basement value.
2. Also - investors are wary about high debt issues and Enron-itis accusations, (no matter how unfounded). Look at TYC - almost $3 EPS, but trading at only $26.

That said, you gotta believe CPN will at least double over next 18 to 24 months if they get their debt in control and make good deals contract-wise.