At the same time, energy giant Enron (nyse: ENE) said it would stop supplying power to industrial and commercial customers in California, handing that task over to the states' troubled utilities.

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The BBC's Dan Collyns in Lima says soldiers killed in the attack were part of that operation, which is focused on isolated jungle in the Ene-Apurimac valley - a hotbed for traffickers and guerrillas.

BBC: Peru rebels launch deadly ambush

At the same time, energy giant Enron (nyse: ENE - news - people) said it would stop supplying power to industrial and commercial customers in California, handing that task over to the states' troubled utilities.

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