PORTLAND - The attorneys general of Oregon and Washington state on Monday
sent letters to the chairman of the Federal Energy Regulatory Commission,
criticizing the agency for its investigation of alleged Enron market
manipulation and calling for immediate enforcement action to protect Western
ratepayers. Attorney General Hardy Myers of Oregon and Attorney General Christine
Gregoire of Washington both said recent developments in the Enron case,
including the indictment of former Enron CEO Kenneth Lay, add to the mounting
evidence the bankrupt energy trading company helped send prices soaring during
the Western energy crisis of 2001. "There can be no doubt that Enron, through fraud and deceit, sent the
West Coast energy market into an unnecessary and destructive tailspin,"
Myers said in a prepared statement. "The fact that FERC has not already taken adequate steps to hold this
company accountable is inexcusable," he said. Gregoire added: "The recent disclosure of tapes and trading transactions
has confirmed beyond any doubt that Enron was not only involved in fraudulent
and deceptive practices in the electricity markets, but that it created many of
them and was actively developing new ways to defraud customers." Both Myers and Gregoire urged FERC Chairman Patrick Wood to provide state
investigators with "any and all documents" related to Enron efforts to
manipulate the market and to hold the Texas company accountable. A FERC spokesman said the agency already is working with the states and has
asked Congress for additional authority to punish companies for market
manipulation. "Pat Wood has said he does wish he had more authority under the Federal
Power Act to do more and act quicker," said Kevin Cadden, FERC spokesman in
Washington, D.C. "But we can only use the tools that Congress has given us, and these
things take time." He noted a $3 billion refund plan for California ratepayers has been
submitted to regulators in that state, and now it is up to them to process the
refunds, not FERC. "We've set up a formula for that refund and we wish we could speed it
up, but we can't it's up to California," Cadden said. Kevin Neely, spokesman for Myers, said the states need FERC to help
substantiate the allegations against Enron in order to improve the chances that
states and ratepayers will see at least some money from the Enron bankruptcy. "The question is how far down in the pecking order you're going to
be," Neely said.
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