Enron Had Easy Access to FERC, Boxer Says

Enron Corp. executives met with or called top federal energy regulators at least 25 times in less than a year, including two White House-convened meetings in which then-Enron Chairman Kenneth L. Lay and others grappled with California’s energy crisis as blackouts rolled across the state, according to a summary of the meetings released Friday by Sen. Barbara Boxer (D-Calif.).

Boxer said she is disturbed by the list of contacts between Enron and the Federal Energy Regulatory Commission, saying it “shows that decision makers at FERC were wined and dined by Enron both in Washington and Texas in an obvious effort to win friends and allies as part of its campaign to control all aspects of America’s energy policy.”

The list details contacts by telephone and in person, frequently over meals, between 12 current and former commissioners and staff members of FERC and executives at Enron, including Lay and then-Chief Executive Jeffrey K. Skilling between August 2000 and June 2001. Topics included California’s energy mess, electricity deregulation, natural gas pipeline safety and a tour of Enron’s energy-trading operation.

Twice in January 2000, Enron and FERC officials attended large meetings that also included then-Energy Secretary Bill Richardson and California Gov. Gray Davis to discuss ways to resolve California’s electricity crisis before George W. Bush was inaugurated.

FERC Chairman Pat Wood said he does not believe Enron “had any undue influence” over the commission’s decisions and did not violate federal laws or FERC rules that prohibit trying to influence the direction of a contested matter. Enron spokespeople did not return calls requesting comment.

But consumer advocates expressed outrage at the kind of entree granted to Enron executives at a time when the consumer groups were locked out of discussions at FERC on how to fix California’s electricity problems and other energy matters.

“We, along with all consumer groups, had no access to FERC,” said Tyson Slocum, energy research director for Public Citizen, a Washington-based consumer lobbying organization. “It’s not a regulatory body that is very friendly or responsive. It is remarkable that a company like Enron can get such access.”

Enron, a big campaign donor, was noted for its ability to reach key politicians and regulators as it grew to become the nation’s seventh-largest corporation and the world’s largest energy trader.

But Enron lost an important round in California when FERC, under new Chairman Wood, decided in May to put price controls on electricity sales to the state. Similarly, as it plunged toward bankruptcy last year, Enron’s pleas to Bush administration officials for help with its banks and credit-rating firms went unanswered.

Boxer, who asked for the list Jan. 31, said she would push for more detail about the meetings. She also has asked the General Accounting Office to look into the contacts.

“It is disturbing that during the period of time that California consumers were begging for relief from the price-gouging electricity crisis, Enron was engaging in an active campaign to get close to the top FERC decision makers--the only people who could bring relief to my state,” Boxer said in a statement.