05.07.02

Statement from Senator Cantwell on Enron Documents

"Based on the documents released yesterday, I believe ratepayers deserve prompt relief from Enron's trading practices. The documents reinforce what Washington state electricity consumers have suspected all along: that Enron was manipulating prices in the western market, contributing to the double-digit rate increases we face today.

"I believe the Federal Energy Regulatory Commission ought to use its power to void long-term contracts with unjust and unreasonable rates. I also believe we need new Senate hearings to review these findings and to explore all available options for ratepayer relief under federal law."

Key facts:

The internal Enron memos showing price manipulation were released as a result of a FERC investigation requested by Senator Cantwell on January 29, 2002 during a Senate Energy Committee hearing. The purpose of the investigation is to determine whether Enron manipulated the prices of long-term energy contracts in the Western market. Under Section 206 of the Federal Power Act (FPA), FERC has the authority to void long-term contracts that are unjust and unreasonable. Washington state ratepayers continue to bear the burden of long-term contracts with Enron. The Bonneville Power Administration alone has $700 million worth of such contracts. Both the Snohomish Public Utilities District and PacifiCorp have filed petitions with FERC for relief under sections 205 and 206 of the FPA from long-term contracts with Enron.