05.22.02

Cantwell to FERC: Release Affidavits on Price Manipulation

WASHINGTON, DC- The Federal Energy Regulatory Commission (FERC) issued data requests - due today - to more than 100 other participants in Western markets, asking that an officer of each of these companies submit an affidavit about whether his or her company has engaged in the same manipulative trading practices as Enron. U.S. Senator Maria Cantwell today called on FERC to make these documents public as soon as possible.

"Consumers have lost faith in the government's ability to protect them from unscrupulous energy companies like Enron," Cantwell said. "FERC can help restore consumer confidence in the energy market by conducting a thorough, prompt and public investigation. FERC could take a step in the right direction by releasing the documents obtained through the data request."

The text of the letter follows:

May 22, 2002 The Honorable Pat Wood III Chairman Federal Energy Regulatory Commission 888 First Street NE, #11A Washington, DC 20426 Dear Chairman Wood:

Thank you for the work that you and your staff are doing to investigate price manipulation in Western energy markets per my request at the January 29 Senate Energy and Natural Resources Committee hearing on Enron's collapse.

As you know, this investigation has prompted the release of the now-infamous Enron memos, outlining the company's strategies for driving up energy costs. I understand that the Federal Energy Regulatory Commission (FERC) has issued data requests, due today, to more than 100 other participants in Western markets, asking that an officer of each of these companies submit an affidavit, admitting or denying under oath whether his or her company has engaged in the same manipulative trading practices as Enron.

I strongly urge you to publicly release these affidavits as promptly as possible. In addition, I would like to know precisely how FERC intends to verify these companies' claims.

I strongly believe that a thorough, prompt and public investigation of price manipulation in the West will bolster American consumers' faith that we do indeed have a "cop on the beat" effectively patrolling our nation's energy markets.

The American people need confidence that our federal energy regulators fully understand how the past year's crisis occurred and how we can best prevent it from happening again.

Sincerely, [Original signed]

Maria Cantwell U.S. Senator

cc: Commissioner Linda Breathitt Commissioner Nora Brownell Commissioner William Massey