Cantwell Releases Evidence Showing Enron Profited From Emergency NW Power Intended for California
Enron exported power to Southwest even as Northwest operated energy system at full capacity to supply power-hungry CaliforniaAudio tapes show Enron knew of harm to NW salmon and ratepayers
WASHINGTON, D.C. – U.S. Senator Maria Cantwell (D-WA) today released new Enron audio tapes and financial documents uncovering an Enron scheme to profit from emergency power generated in the Northwest intended to help California during the western energy crisis.
On the same days the Bonneville Power Administration (BPA) was operating the Northwest energy system at maximum capacity to assist California, new data shows Enron was exporting power out of California to Southwest markets where price caps were not in place. In addition, Enron was also engaged in multiple manipulation schemes such as "Death Star" and "Load Shift" on those days, further distorting Western market conditions. Enron audio tapes show that Enron traders were aware that not only were they exporting much needed power from California to increase their own profits, those profits came at the expense of Northwest consumers and the environment.
The financial documents reveal that Enron was exporting to the Southwest at least one-third of the amount of power BPA was shipping to California during this period. The Enron exports thus far identified for these days (August 3 and August 4, 2000) were large enough to power a city the size of Seattle for more than six hours. BPA was shipping Northwest power to California under a federal directive to maximize Northwest hydroelectric production to help keep the lights on during California's electricity emergencies.
In new audio tapes released today by Senator Cantwell, Enron traders and executives, one of whom (Tim Belden) has since plead guilty to energy market manipulation, discuss their scheme to profit from the emergency sale of power from the Northwest to California during the western energy crisis by reselling power into southwestern markets, where prices were even higher.
Tim Belden, Enron trader: What's going on? It's hot. It's hot and they don't have enough power. And they kill fish in northwest so that people in California can go enjoy themselves at a baseball game.
Rick Shapiro, Enron exec: And then what are we doing, are we exporting some of the 'fish kill power' out of California?
Tim Belden, Enron trader: We are exporting some power from California to the southwest.
In another tape, a trader remarks that "You know what they're doing? They're selling the fish in Oregon to the State of California for $250.because they're shutting off the spill.they're killing thousands of fish."
Senator Cantwell and Steve Johnson, Executive Director of the Washington Public Utility Districts Association, said the scheme was the latest example of how Enron's energy market manipulation harmed Northwest ratepayers, which the Federal Energy Regulatory Commission has yet to acknowledge. Cantwell and Johnson said relief from the Federal Energy Regulatory Commission was long overdue.
"This new evidence shows that as the Northwest was scrambling to supply California with emergency power, Enron was working just as hard to manipulate energy markets by shipping power out of California to the Southwest," Cantwell said. "How can anyone deny that the Northwest was harmed by Enron's shenanigans and that Enron knew it? It's about time that federal regulators stepped up to the plate and recognize that we paid a price and deserve some relief."
The financial documents show that Enron was in fact exporting power from California to the Southwest, where caps were not in place and prices were often higher. On these same days, the Bonneville Power Administration was asked to stretch the Northwest system and send as much power to California as possible, to meet emergency conditions. BPA was taking extra steps to maximize its hydro production, sending about 19,500 Megawatt-hours (MWh) into California markets on August 3 and August 4, 2000. On these same days, financial records released so far show Enron exported about 6,700 MWh of power out of California to the Southwest.
August 3, 2000 August 4, 2000 Total BPA sales to CA 10,310 MWh 9,274 MWh 19,584 MWh Enron exports 2,240 MWh 4,491 MWh 6,731 MWh
Sources:
Bonneville Power Administration; Enron CAPS database, August 3, 2000; Enron Enpower database and Enpower to CAPS Reconciliation sheets, August 4, 2000
WASHINGTON, D.C. – U.S. Senator Maria Cantwell (D-WA) today released new Enron audio tapes and financial documents uncovering an Enron scheme to profit from emergency power generated in the Northwest intended to help California during the western energy crisis.
On the same days the Bonneville Power Administration (BPA) was operating the Northwest energy system at maximum capacity to assist California, new data shows Enron was exporting power out of California to Southwest markets where price caps were not in place. In addition, Enron was also engaged in multiple manipulation schemes such as "Death Star" and "Load Shift" on those days, further distorting Western market conditions. Enron audio tapes show that Enron traders were aware that not only were they exporting much needed power from California to increase their own profits, those profits came at the expense of Northwest consumers and the environment.
The financial documents reveal that Enron was exporting to the Southwest at least one-third of the amount of power BPA was shipping to California during this period. The Enron exports thus far identified for these days (August 3 and August 4, 2000) were large enough to power a city the size of Seattle for more than six hours. BPA was shipping Northwest power to California under a federal directive to maximize Northwest hydroelectric production to help keep the lights on during California's electricity emergencies.
In new audio tapes released today by Senator Cantwell, Enron traders and executives, one of whom (Tim Belden) has since plead guilty to energy market manipulation, discuss their scheme to profit from the emergency sale of power from the Northwest to California during the western energy crisis by reselling power into southwestern markets, where prices were even higher.
Tim Belden, Enron trader: What's going on? It's hot. It's hot and they don't have enough power. And they kill fish in northwest so that people in California can go enjoy themselves at a baseball game.
Rick Shapiro, Enron exec: And then what are we doing, are we exporting some of the 'fish kill power' out of California?
Tim Belden, Enron trader: We are exporting some power from California to the southwest.
In another tape, a trader remarks that "You know what they're doing? They're selling the fish in Oregon to the State of California for $250.because they're shutting off the spill.they're killing thousands of fish."
Senator Cantwell and Steve Johnson, Executive Director of the Washington Public Utility Districts Association, said the scheme was the latest example of how Enron's energy market manipulation harmed Northwest ratepayers, which the Federal Energy Regulatory Commission has yet to acknowledge. Cantwell and Johnson said relief from the Federal Energy Regulatory Commission was long overdue.
"This new evidence shows that as the Northwest was scrambling to supply California with emergency power, Enron was working just as hard to manipulate energy markets by shipping power out of California to the Southwest," Cantwell said. "How can anyone deny that the Northwest was harmed by Enron's shenanigans and that Enron knew it? It's about time that federal regulators stepped up to the plate and recognize that we paid a price and deserve some relief."
The financial documents show that Enron was in fact exporting power from California to the Southwest, where caps were not in place and prices were often higher. On these same days, the Bonneville Power Administration was asked to stretch the Northwest system and send as much power to California as possible, to meet emergency conditions. BPA was taking extra steps to maximize its hydro production, sending about 19,500 Megawatt-hours (MWh) into California markets on August 3 and August 4, 2000. On these same days, financial records released so far show Enron exported about 6,700 MWh of power out of California to the Southwest.
August 3, 2000 August 4, 2000 Total BPA sales to CA 10,310 MWh 9,274 MWh 19,584 MWh Enron exports 2,240 MWh 4,491 MWh 6,731 MWh
Sources:
Bonneville Power Administration; Enron CAPS database, August 3, 2000; Enron Enpower database and Enpower to CAPS Reconciliation sheets, August 4, 2000
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