Boxer And Feinstein Call Audio Tapes Of Enron Employees

Washington, D.C.- In light of new evidence detailing the scam perpetrated by Enron against California during the Energy Crisis, U.S. Senators Barbara Boxer and Dianne Feinstein (both D-CA) today called on the Federal Energy Regulatory Commission (FERC) to immediately refund California at least $8.9 billion that it is owed and order a renegotiation of the long-term contracts that were made under manipulated prices.

Attached please find a copy of the Senators' letter to Chairman Wood.

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June 2, 2004

The Honorable Patrick Henry Wood III
Chairman
Federal Energy Regulatory Commission
Washington, DC 20246

Dear Mr. Chairman:

We are writing to you about the latest, clearest evidence that California was robbed during the electricity crisis.

The electricity price gouging crisis ended almost three years ago. FERC has still done nothing of consequence to ensure that California is reimbursed for the outright theft by electricity traders and others who created false shortages and drove up prices. As a result, California spent 266 percent more on wholesale electricity in 2000 than in 1999.

Now, you can see into the heart and soul of the scandal. CBS News has audio tapes of Enron energy traders and executives.

This first phone call took place after a forest fire shut down a major transmission line into California:

Unidentified Man #1: Burn, baby, burn. That's a beautiful thing.

Unidentified Man #2: He just (censored) California. He steals money from California to the tune of about a million...

There are other phone calls from Enron's West Coast trading desk. According to CBS News, "In secret deals with power producers, traders deliberately drove up prices by ordering power plants to shut down."

As California is trying to obtain refunds, the following conversation involving an Enron trader occurred:

Unidentified Man #6: They're (censored) takin' all the money back from you guys? All that money you guys stole from those poor grandmothers in California?

Unidentified Man #7: Yeah, Grandma Millie, man.

Unidentified Man #6: Yeah, now she wants her (censored) money back for all the power you've charged right up - jammed right up her ass for (censored) $250 a megawatt-hour.

We ask you to immediately refund California at least $8.9 billion that it is owed and order a renegotiation of the long-term contracts that were made under manipulated prices.

If you do not order refunds and the renegotiation of the contracts, then you are sending a signal to those companies that cheat and scam, that they will not be held responsible for their misdeeds.

Please contact us immediately to let us know of your decision.

Sincerely,

Barbara Boxer
United States Senator

Dianne Feinstein
United States Senator