Cantwell, Snohomish PUD Reveal New Enron Evidence: Enron Conspired to Shut Down Power Plant, Contribuing to Western Blackout
Power cut to 500,000; prices spiked to five times normal New audiotapes previously left behind by federal investigatorsdiscovered at Enron warehouse
WASHINGTON, D.C. – U.S. Senator Maria Cantwell (D-WA) and officials from Washington state's Snohomish PUD today release new evidence detailing the pervasiveness of Enron's schemes to manipulate Western power markets. The evidence, including newly-public audiotapes, revealed Enron employees planning to take a power plant off line for January 17, 2001—the same day half a million citizens suffered rolling blackouts. Power market prices that day averaged at least five-times normal levels.
"This scheme was a direct and purposeful violation of a federal emergency order directing power suppliers to help keep the lights on," Cantwell said. "Blackouts pose serious health and safety risks for our citizens. Conspiring to keep power off the grid in the middle of an emergency takes Enron's schemes to a whole new level of corruption."
In addition, Cantwell and SnoPUD released new audio from additional tapes that were recently discovered in one of Enron's Houston warehouses—left behind by federal investigators. The tapes include Enron employees discussing how they were asked to "cook the books," speculating that "everyone knew" what was going on, and that "nothing happened at Enron that Ken Lay didn't bless."
Cantwell called on the Federal Energy Regulator Commission (FERC) to explain why it had failed to uncover these tapes in its own ongoing Enron investigation. In light of mounting evidence of Enron's fraudulent activities, Cantwell also renewed her call for FERC to take action to void Enron's pending claims against utilities including Snohomish, for payment on inflated power contracts that were terminated when the energy giant collapsed into bankruptcy. Enron's lawsuits against utilities in Washington and Nevada alone total almost half a billion dollars.
"This is further evidence that FERC should act immediately to provide relief to Washington ratepayers, who are being asked to pay Enron yet again," Cantwell said. "FERC has the clear statutory authority to do just that."
Earlier in the day, Cantwell also detailed her objections to the nomination of Judge Alberto Gonzales to be the next U.S. Attorney General. Cantwell cited the fact Judge Gonzales refused to commit to recusing himself from the Department of Justice's ongoing Enron investigation—despite his previous political and professional ties to the bankrupt company. Outgoing Attorney General Ashcroft quickly recused himself from DOJ's Enron investigation, given similar political ties.
"The Enron investigation must be allowed to proceed, free from any potential political interference from special interests, particularly the interests under investigation," Cantwell said. "If there is any hint whatsoever that the Enron Task Force is being undermined, under-funded, or otherwise hindered, this Senator will not stand for it."
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