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The Jehoshua Novels


Tapes show almost daily manipulation by Enron

Tapes show almost daily manipulation by Enron
Gene Johnson | Seattle | June 15, 2004

(AP) – Enron Corp. manipulated the energy market practically every day during the 2000-01 power crunch and gouged Western customers for at least $1.1 billion, according to audiotapes and documents released Monday.

Tapes show almost daily manipulation by Enron  

SEATTLE — Enron Corp. manipulated the energy market practically every day during the 2000-01 power crunch and gouged Western customers for at least $1.1 billion, according to audiotapes and documents released Monday.

The records were uncovered by the same utility that last month released details of profanity-laced conversations in which Enron traders gleefully gloated about ripping off ”those poor grandmothers” in California during the power crisis.

The latest release by the Snohomish Public Utility District provides another glimpse into how Enron allegedly rigged the market at the same time millions of Californians were suffering blackouts and paying sky-high electricity bills.

The utility wants an administrative law judge to order Enron to surrender up to $2 billion in ill-gotten gains. California politicians want Enron to reimburse customers there at least $8.9 billion.

The latest documents show Enron manipulated the market on 473 of 537 days from January 2000 to June 2001, the utility said.

In one scheme, Enron made $222,678 in a three-hour period by shipping power from California to Oregon, masking the original source of the power, and then selling it back to California at highly inflated rates.

The records also show that Enron employed at least five other schemes, dubbed ”sidewinder,” ”Ping-Pong,” ”donkey punch,” ”spread play” and ”Russian roulette.”

The documents also show that Enron maintained five separate sets of accounting records.

Enron refused to comment on the records except to say it is cooperating with all investigations. Energy traders routinely keep tapes of their phone calls as a record of oral contracts.

Sen. Maria Cantwell (D-Wash.) used the evidence to demand a new investigation by the Federal Energy Regulatory Commission. She said the agency’s failure to uncover Enron’s schemes wound up hurting thousands of customers and that the commission tried to keep the utility district from getting access to Enron’s tapes.

FERC spokesman Bryan Lee said the agency would review the documents to see what new information they contained. He denied that the agency had tried to suppress any information.

An administrative law judge’s finding that Enron should forfeit $32.5 million in unjust profits is pending before the FERC.

Enron filed for bankruptcy in 2001 amid devastating revelations of hidden debt, inflated profits and shady accounting.

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