U.S. Sen. Maria Cantwell (D-Wash.) in a statement Monday blasted the Federal Energy Regulatory Commission and said it needs to reopen its investigation of Enron as newly discovered documents and audio tapes show Enron's illegal manipulation of energy markets. She also called on FERC to void contracts signed with Enron by Western utilities during the 2001 energy crisis.
The new evidence -- including audio tapes of Enron employees apparently finding humor in the plight of Western electricity ratepayers -- was discovered by the Snohomish County Public Utilities District while defending itself from a $122 million lawsuit by Enron for canceling a 2001 contract. Enron has brought similar suits -- totaling about $500 million -- against several Western utility companies.
The utilities were compelled to sign long-term power purchasing contracts as energy prices continued to rise in order to protect from even higher future prices. After the crisis passed, and energy prices began to fall, the utilities were locked into the high-priced contracts they had signed. The FERC has to this point said the contracts are legal and binding. If that changes, the basis for the Enron suits would no longer exist, Cantwell said.
"Incredibly, when Snohomish PUD sought the now-infamous Enron audio tapes from the Department of Justice to prepare its defense, FERC staff filed a motion to quash Snohomish PUD's subpoena," Cantwell said in the statement. "We now have over nine hours of audio tape and tens of thousands of pages of financial documents covering 18 months in our possession that FERC not only failed to uncover in its investigation, but attempted to quash in ours."
Cantwell sits on the Senate Energy and Natural Resources Committee, which has oversight over FERC.
The Snohomish County resident said her Snohomish PUD energy bills have increased by about $800 since the energy crisis, and her electricity usage is about 20 percent lower than the average Snohomish PUD ratepayer.
"I'm not going to allow Enron to treat Western ratepayers as their deep pockets," Cantwell said. "We don't owe Enron, Enron owes us."