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Inslee listens to a constituent.

Montage of Wing Point in Bainbridge Island and the Edmonds Ferry.

Jay Inslee: Washington's 1st Congressional District

Legislative Issues

Enron Fraud

Rate Relief and Refunds from Enron Market Manipulation

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Background:

Snohomish County ratepayers and other consumers on the West Coast are being forced to pay artificially high costs for energy as a result of Enron’s manipulation of western energy markets during the 2000-2001 energy crises. Ratepayers might have to pay even more in the future since Enron is currently suing the Snohomish PUD for $122 million for a contact that the local utility signed during Enron’s price gouging.

Solution:

To correct this injustice and provide energy rate relief to Snohomish County citizens, U.S. Rep. Jay Inslee (WA-01) has offered legislation and amendments to energy bills in the U.S. House of Representatives to force the Federal Energy Regulatory Commission (FERC) to cancel these contracts, and to move back the date from which consumers could receive refunds from Enron’s price gouging. The House Majority Leadership has refused on multiple occasions to allow a direct vote on Inslee’s amendments for refunds to public utilities and consumers.

In a letter to Inslee, the Federal Energy Regulatory Commission claimed that it lacks the authority to provide rate relief to consumers for Enron’s market manipulation prior to June 25, 2003, when FERC revoked Enron’s market-based rate authority. Inslee sent a response letter to FERC laying out for the Commission the legal authority that it has to move back the current cutoff date for consumer refunds. The Court of Appeals for the Ninth Circuit recently issued a decision that FERC does in fact have this remedial authority.

Below are links to documents relating to Inslee's attempts to secure energy rate relief for Snohomish ratepayers who were gouged by Enron’s market manipulation:

Recent Developments:

On June 25, 2004, the House Leadership prevented a vote on Inslee’s amendment to the Energy and Water Appropriations bill (H.R. 4614), which would have provided relief to West Coast ratepayers by moving back the date from which consumers and public utility districts could receive refunds from Enron's price gouging. The House Rules Committee refused to allow a direct vote on this amendment, and the full House later voted primarily along party lines (Roll Call no. 320) to uphold this decision to prevent debate and vote on the individual amendment. In a small victory, the House did pass an amendment offered by Inslee and U.S. Reps Anna Eshoo (CA) and Peter DeFazio (OR) to compel FERC to release all documents or evidence relating to Enron’s West Coast energy market manipulation. The amendment will help Snohomish PUD and other utilities extract information about Enron and other companies, assisting them in their efforts to get refunds for their consumers. Despite this successful amendment, Inslee expressed dismay that the House Republican Leadership prevented a vote on his amendment to force FERC to provide relief to Northwest ratepayers who were gouged by Enron.

“We were successful today in lifting FERC’s veil of secrecy over Enron’s market manipulation,” said Inslee.” “By opening the books on Enron, consumers and Snohomish PUD will have a greater ability to receive redress from the crimes committed by the energy company. Our small victory today is overshadowed, though, by the Republican Party’s decision to deny us a vote on correcting one of the largest frauds in American history. This is the second time this year that we have tried to help West Coast ratepayers get refunds. Why will this Chamber not even allow the right to vote on the measure to recover some sense of justice? The House Leadership says they are concerned, but cannot even provide us with a date on which we could vote for refunds. The Leadership’s refusal to act has allowed Enron to keep the billions of dollars that they stole from West Coast ratepayers.”

Recently, Inslee and U.S. Senator Maria Cantwell (D-WA) also released numbers to show that Enron’s $122 million lawsuit against Snohomish PUD could cost Snohomish County Schools $2.5 million, enough to pay for textbooks for 40,000 students for a full year. Snohomish County schools have already paid more than $9 million in increased energy costs due to energy market manipulation and the western energy crisis despite cutting usage by nearly ten percent.

“While Washington State schools are facing huge financial challenges, the Majority Leadership continues to prevent a vote on our efforts to reduce the energy costs for our schools and families,” said Inslee. “The House has had several chances to provide relief to Snohomish County ratepayers, but the Leadership decided to put their friendship with Enron above common sense refunds for Snohomish County.”

enron_meeting_web.jpg (67009 bytes)

Seen here, U.S. Rep. Jay Inslee (behind podium) and Snohomish PUD government affairs director Al Aldrich (right) respond to the reactions of Snohomish County seniors at the Edmonds Seniors Center to the Enron energy tapes and efforts to secure rate relief.