Feds Re-Open Enron Investigation

A small indie paper is reporting that FERC is re-opening its investigation into Enron’s west coast energy trades. I’ve not seen it anywhere else, so I am waiting for confirmation, but this is what the Houston Press says:

There are some (a lot?) of former Enron traders and execs in town who might have thought they had safely weathered the investigation into whether that company manipulated electricity prices in California in 2000, causing a crisis.

They may have to think again.

FERC (the Federal Energy Regulatory Commission) has reopened the investigation, according to an order issued Monday, as part of an eventual response to a federal appellate ruling that said FERC’s initial investigation had been too narrow.

As one electricity-markets expert explained it to us:

Initially, FERC looked at a specific time period during the West Coast power crisis to search for market manipulation. The 9th US District is pushing the Commission to look at the ENTIRE time period. Even if no additional culprits are found, it will do more than beat a dead horse — it will no doubt repeat more egregiousness from the usual suspects. And most of those usual suspects (Reliant, Enron, Dynegy, etc) were either HQ’d or had offices in Houston trading the West.
A good majority of the players are still in the business. Almost all has been forgiven, if not forgotten (by the smaller utilities forced under duress to sign contracts for power for many years in the future at 20x the going rate).

A spokesperson for FERC tells Hair Balls, however, that she is not sure how far-reaching the order is. “It was issued in the context of cases that had not been completely resolved,” Mary O’Driscoll said.

Still, some people should be at least nervous.

The California crisis was where Enron traders were heard laughing about what was going on in recorded calls found by investigators, including this exchange:

Employee 1: “All the money you guys stole from those poor grandmothers in California?
Employee 2: “Yeah, Grandma Millie man.

Employee 1: “Yeah, now she wants her fucking money back for all the power you’ve charged right up, jammed right up her ass for fucking $250 a megawatt hour.”

Enron: Not missed.

Some utilities have settled their claims; the litigation obviously drags on for others.

Interesting. After eleven years though, isn’t it time to make this just a memory?

Dear FERC, Thanks For The Classified Enron Information

Dear FERC,

I understand that as a federal agency you probably can not hire the “best and the brightest” so I forgive a lot of the asinine stuff that you issue forth like a Dutch dike on a warm summer evening. I am in an especially forgiving mood when the error works in my favor as it did this evening.

This evening, as my “friend” and I were on the way to have dinner, I checked my mailbox and was pleased to discover a big fat package from you in my box. (You’re welcome.) I had sent a FOIA request some months ago and had largely forgotten it. The FERC return address reminded me that I was furious over your handling of the Enron investigation. I got back into my friend’s car, set the package aside, and did not think much more about it.

When we returned back to my place, just now, I opened the package and found a big fat stack of CLASSIFIED ENRON MATERIAL. I was standing at my bar while the friend was kissing my neck and trying to make me hurry up with the infernal mail. Well, thank you, FERC because I have never in my entire life been so completely consumed with lust as I was that moment. Still, before I gave in to my prurient desires, I had to make sure I was seeing what I thought I was seeing. I handed my friend – who, by the way, was a senior executive at Enron so he knows what’s what (at least about some things) – the package. I asked him, with awe and hope dawning in my eyes, “Is this…?”

He confirmed that it looked like investigation material (what your lawyer folks will call “work product”; you should look into this) from the Enron investigation. The materials are stamped with various warnings, including: DO NOT DISTRIBUTE, CLASSIFIED and even one document that has the spooky and much-beloved phrase EYES ONLY. There are some things censored out – but very few things.

Now, I understand that the Enron collapse and investigation was a long time ago. Oh I remember those days of lawless pleasure-seeking, the freedom of the early 00s. But even someone as careless as I would not be THIS careless.

But I forgive you because, as I said, this is great for me. The friend and I are hitting Kinkos in the next two minutes to make copies. Lots and lots of copies. Lots.

So anyway, I think I need to give in to the friend because he’s been very patient watching me type this out, being willing to go to Kinkos with me, etc. etc. I will rock his world this evening – but for now, FERC, I want you to know that it is you who is rocking my world.

Love and kisses,

Cara Ellison

Return address:

I’m blocking my address but wanted to show that it was indeed a package directed to me, in Houston Texas.

“The Fat Package” with the only stuff that is blanked out.

One of the bureaucratic warnings that were ignored (thank you).

My big ole package of classified Enron material.