Small utility takes lead in fighting Enron

[Robbien]

01:00 AM EDT on Sunday, June 27, 2004

BY GENE JOHNSON
Associated Press

. . .

How did a public utility district with 290,000 customers nearly 2,000 miles from Enron's Houston headquarters find itself at the forefront of such a complex legal battle, ahead of much larger utilities and state and federal regulators? "We just happened to turn over the right rock that had this amazing trove of evidence that was not only legally explosive, but something that ordinary people could listen to and say, 'Wow, these guys are really crooked . . .,' " said Snohomish lawyer Eric Christensen.

The story starts in the latter half of 2000, when a drought had cut into the hydropower the utility normally uses, California's effort to deregulate its energy industry was imploding and market prices for power were soaring. For months, Snohomish resisted buying any more energy while it waited for the Federal Energy Regulatory Commission to cap prices or otherwise ensure that prices returned to normal.

In January 2001, it gave up, entering into a nine-year contract with Enron to buy power at $109 per megawatt hour, more than four times as much as the utility had been accustomed to paying for such contracts. That fall, as evidence of Enron's extensive misdeeds surfaced and its stock price evaporated, Snohomish canceled the contract, saying it was voided by Enron's fraudulent practices. In 2002, as part of its bankruptcy proceedings, Enron sued, arguing it was entitled to the profits it would have made had the contract been fulfilled: $122 million.

. . .

As absurd as the claims seemed to officials in Nevada and Washington state, a federal bankruptcy court judge in New York last fall ordered them to pay -- a decision that is being appealed. Meanwhile, Snohomish and Nevada Power, among others, are trying to convince FERC that Enron should be ordered to surrender up to $2 billion in scammed profits. But, the agencies say, FERC has done nothing about the case since it was opened last October.

. . .

Snohomish followed suit, obtaining -- over FERC's objections -- tapes of 2,800 hours of conversations involving Enron traders. FERC spokesman Bryan Lee says his agency opposed the request for the tapes to protect criminal investigations of Enron by the FBI and Justice Department. FERC officials then said they would review the tapes. Before that announcement, Sen. Maria Cantwell, D-Wash., was incensed that they hadn't taken any action. "For a little PUD to spend $100,000 transcribing tapes that FERC and other people should have done, it's just crazy," Cantwell said.

I think I can, I think I can, the little PUD said.
You rock Snohomish!

[pfitz59]

1. I live in Snohomish County....

This is my ekectric company. We are very proud!

[Robbien]

2. As well you should be

The tapes are very powerful and without Snohomish we wouldn't know.

[oscar111]

3. Energy Bill alert!

warn all... Publiccitizen has alerted all that last week, about June 13-17, was declared by bush as "energy bill week", and they plan to push again for all or parts of the horrid "blackout" energy bill that totally repeals FDR's regulation of utilities... PUHCA.. public utilities holding company act. It makes them do upkeep, like trimming branches.

Tell your senators to oppose the horrid S2095 {i think that is the no. } Energy Bill fm Senator Dominici of N Mexico. The Senate site seems to be way out of date posting current status of that bill. Full name is "Energy Policy Act of 2003" even tho one with 2004 is listed at the site. Public citizen definitely wrote 2003, last week.

Repealing PUHCA would give lots more power to utilities, making blackouts for profit {a la California + Enron} more likely.

Contact your senators now! Tell all to do likewise! If bush will push again , right after the Enron tapes , he must be fanatical to pass the horrid repeal of PUHCA.
This is the third try this year.

Contact your senators NOW!