06.02.04

Sen. Cantwell's Floor Statement on Enron Tapes

WASHINGTON, D.C. - U.S. Sen. Maria Cantwell (D-WA) spoke on the Senate floor today in reaction to the release of audiotapes obtained by Snohomish Public Utilities District containing comments admitting to market manipulation that continues to gouge consumers in Washington state. Cantwell's legislation, The Electricity Needs Rules and Oversight Now (ENRON) Act, S. 2015, would ban market manipulation schemes that drive up energy prices, such as those used by Enron during the energy crisis of 2000-2001.

Cantwell's floor statement follows below:

"Mr. President, I rise today to talk about something I have tried to address many times before in this body, and that is the issue of market manipulation and energy contracts specifically by the Enron company that have gouged my constituents for millions of dollars.

"We have seen in the last couple of days as my own home public utilities district, Snohomish PUD, was successful at getting audiotapes from the Enron company that showed exactly what people thought was happening: That people were talking about market manipulation, that people were talking about schemes, that people were making jokes about $250 megawatt costs and prices that were gouging my constituents on energy prices. Now we know this company has already been cited by the Federal Energy Regulatory Commission as having manipulated the markets; now we are hearing in their own voice, in their own words, among their own employees, that this manipulation was going on. The question is, what are we going to do about the market manipulation that has happened and for which my consumers have been gouged? My own home, my own personal utility has had a 50-percent rate increase since the energy crisis took place. That means my constituents have been paying higher energy costs on Enron-manipulated contracts and other contracts during this time period.

"One would think that once market manipulation had been admitted, once market manipulation had been documented that we would do something about the market manipulation. In fact, yesterday, the President said we must pass the Energy bill and we must protect consumers. I have a message for the President: This Energy bill does not protect consumers. In fact, it guarantees that the market manipulation which was done by Enron will continue because it basically says that market manipulated contracts can be standard for today. I think that is absolutely wrong. My constituents, in reports and analyses by California, Washington, and Oregon economists, have probably lost 100,000 jobs directly and indirectly from the energy crisis. We have lost a big percentage of our GDP. And we have had a huge increase in rates throughout the State.

"So what does that mean? That means my constituents are still paying on those Enron contracts, and when our utilities said they were not going to pay, what happened? Enron turned around and sued utilities in my State. Enron is suing my consumers saying: You still have to pay on manipulated contracts.

"Well, here is my check to Enron. Here is my $370.00 check that will still have to go to pay for that Enron contract in which they have admitted market manipulation.

"I have already personally paid them hundreds of dollars on manipulated contracts. So have my constituents. The question is whether this body and this administration are going to do anything about market manipulation, whether they are going to stand up and say that the Enrons of the world have taken the consumer to the cleaners and are going to let my constituents out of these manipulated contracts.

"So while the President would like to have an energy bill, I would like to have an energy bill that protects consumers. I would like to have an energy bill that passes both the House and the Senate where members of this body and the other body stand up and say market manipulation is wrong and we do not condone any contract as just and reasonable or any contract as in the public interest if, in fact, it has manipulated, schemed, and put people out of their homes at a huge cost to many of the consumers in my State.

"I yield the floor."