Enron Manipulated State’s Power Prices

Re “Memo Shows Enron Role in Hiking Prices,” May 7: This story is sexy and, certainly, greed attracts a lot of attention, but like a red herring it draws everyone away from the real problem in the California energy market. The price is not connected to the demand. The people buying the power, the utilities (or the state government, right now), must buy all the power that customers want at any price the producers ask for it. Consumers, who determine the electric demand one person at a time, are not given the price when they make the decision to buy. Indeed, during the crisis period, consumers were buying electricity at a much lower price than the utilities were paying for it.

Until we connect the dots of energy price to energy demand, the system will not work and California will be open to another crisis.

Tom Long

Vice president, retired

Pacific Gas & Electric

Blaine, Wash.

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Well, well, well. So federal energy regulators have uncovered documents that affirmatively demonstrate that Enron and other energy companies engaged in market manipulation that caused soaring power prices and statewide blackouts in 2001. Interesting. I distinctly recall being assured by this same gaggle of energy companies and their political minions that the “energy crisis” was the predictable result of extremist policies advocated by the left and the environmental community. There is a very important lesson to be learned from this whole sordid affair. Is anybody paying attention?

Madison M. Christian

Simi Valley

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Now that we know that California’s “energy crisis” was manufactured by Enron, and because of this company’s close relationship with the present administration, two nagging questions remain: Was that punishment for Dubya losing in our state? Or simply that Texas can’t stand being No. 2?

Felipe Alvarez

Los Angeles

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The May 7 Times contains articles on just about every possible form of corporate corruption. First, we learn there are “smoking gun” documents proving that Enron was manipulating the market during California’s energy crisis. We learn that Archer Daniels Midland, the nation’s largest producer of ethanol, is under investigation for price fixing. Then we read that Peregrine Systems has launched an internal investigation of accounting inaccuracies involving up to $100 million in revenue. And, of course, there is the ongoing investigation into Andersen.

The only thing missing in your coverage is the Bush administration’s proposed remedy for this massive fraud and corruption: more corporate self-regulation.

Dennis M. Clausen

Escondido