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opinion:
our view
Enron
screwed California
A series of documents uncovered as part of the Federal Energy
Regulatory Commission's investigation into the Enron snafu
show that the energy giant was illegally manipulating the
California energy crisis to increase company gains.
The documents are a "smoking gun" for investigators
who now have concrete proof of Enron's shady dealings.
The documents, in the form of several memos, were prepared
by both Enron attorneys and outside attorneys. One, dated
Dec. 6, 2000, "explained how Enron traders exploited
loopholes or market limitations to boost prices or to wring
special payments out of the agencies that operated California's
electricity markets," the Los Angeles Times reported.
The memo said that Enron used strategies such as sham congestion
on electricity lines or selling electricity to out-of-state
affiliates only to re-import it at higher prices.
Basically, Enron was doing nothing more than screwing the
people of California out of not only electricity but also
hard-earned money.
The power crisis that we all faced was a very difficult time
what with continually increasing prices and rolling blackouts.
To think that Enron was purposely trying to gain off the misfortune
of the people of California is frightening.
But even more frightening is not the ease with which Enron
railed California but that Enron might get away with very
minor punishment.
"These documents make it clear that Enron was trying
to squeeze every dime it could out of the market. It's not
surprising that they violated [California Independent System
Operator] rules because the ISO don't provide much punishment
for violators," Severin Borenstein, a UC Berkley professor
and director of the UC Energy Institute, told the Times.
So was California just the easy victim for Ken Lay and the
Enron boys? It seems so.
But what is even more disturbing is that Enron may only get
off with a slap on the hand. Energy experts see Enron's actions
as merely infractions of market rules punishable by fines
or suspensions rather than criminal prosecution. No one is
certain yet if Enron violated federal fraud statutes.
But the simple fact of the matter is Enron erroneously abused
the people of California. In a perfect world, we hope that
corporate giants would look after the people they serve.
Enron did nothing more than stomp all over Californians in
the midst of a crisis to do nothing more than fatten their
already obese wallets.
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