FERC Sought Advice From Enron in Oct.
Federal energy regulators sought policy advice from Enron Corp. last fall, even after the company disclosed its financial problems and revealed that the Securities and Exchange Commission was looking into the matter, new documents show.
On Oct. 17--a day after Enron disclosed that it would slash its shareholder equity by $1.2 billion--an assistant to Federal Energy Regulatory Commission Chairman Pat Wood e-mailed two Enron officials, asking for their advice about the agency’s efforts to regulate electricity transmission lines in the West, according to documents obtained by The Times under the Freedom of Information Act.
“Sometimes it’s hard to see a clear path to gain public trust and make markets work, but I couldn’t be more impressed with Pat Wood’s ability to get us there,” wrote Rob Gramlich, Wood’s assistant, to Alan Comnes and Tim Belden, two Enron officials. “I have a policy question for you.”
Gramlich went on to ask the men about a certain pricing system that regulators were considering for regional transmission markets in the western U.S.
Records show that Gramlich and Comnes continued to correspond through the end of the month and met Oct. 30 in Washington to talk “more about market structure in the West.”
A week earlier, Enron disclosed that the SEC had launched an informal inquiry into the company’s accounting irregularities.
FERC spokesman Kevin Cadden said there was nothing improper about the contacts, saying that Gramlich was gathering input about a FERC issue from a variety of sources, including energy companies, consumer groups and state officials.
He said Gramlich turned to his former UC Berkeley classmates Comnes, Enron’s former director of government affairs, and Belden, who oversaw Western operations., them at UC Berkeley.
Wood previously had said Enron did not wield any undue influence. Documents show that Enron Chairman Kenneth L. Lay, who endorsed Wood’s appointment as chairman, called Wood on Nov. 8 to discuss the company’s problems. Wood did not return the call.
