Enron Tapes Brag How They Manipulated West Coast Power

Enron Tapes Brag How They Manipulated West Coast Power

By Bryan Johnson

SNOHOMISH COUNTY - Officials of Snohomish County PUD say newly released Enron Power tapes could help the utility avoid $122 million in termination fees sought by creditors of now bankrupt Enron.

Snohomish County signed a long term power supply agreement with Enron, but tried to bail out when regulators raised questions about Enron's possible manipulation of the energy market.

PUD officials and 1st District Congressman Jay Inslee say Enron tapes obtained by the PUD may provide a way out of the termination fees.

The tapes were made public over the objection of the Federal Energy Department, but PUD officials say under Washington State's open record act they had to be released. Some parts of the records were edited to protect personal information.

The tapes cover 2000 through 2001. It was in January 2001 when the lights went out in California and, as a result, power bills hit shot up throughout the West.

In one tape, an Enron worker bragged about a co-worker: "He steals money from California to the tune of about a million a day." A second trader said: "Will you rephrase that!?"

Those tapes are now in the hands of Snohomish PUD officials. PUD chief counsel Michael Gianunzio told KOMO 4 News: "It tells you there was huge corruption at Enron, this was the biggest economic conspiracy that ever hit the western United States. They took billions of dollars out of our pockets our consumers, and the money's all gone."

Snohomish County says Enron did it by controlling the amount of power available. They point to another trader conversation between two Enron workers:

"If we shut it down, could you bring it back up in three or four hours, something like that?" "Oh yeah!" "OK, why don't you go ahead and shut it down if that's OK."

Gianunzio says all the conversations were recorded. He added: "Isn't that arrogant. I mean it's beyond arrogance. That's saying we can do whatever we want and we're not going to get caught."

On another tape, Enron marketers talk about California profits: "They're (word deleted) taking all the money back from you guys?" asks an Enron trader. "All the money you guys stole from those poor grandmothers in California?" A second answers: "Yeah, grandma Millie, man."

Gianunzio told KMOMO 4 News: "Grandma Millie. It's disgusting, I mean it's evil, there's no gray area here. These people didn't understand right and wrong."

But on one tape, a worker says they are staying away from the illegal. He laughs and adds: "I'm just trying to be an honest gambler so I only go to jail once." Second man adds: "There you go, at least only in one country." Both laugh.

Snohomish County officials admit all this happened three years ago. But they add no federal laws have changed and it could happen again.

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