[Congressional Record (Bound Edition), Volume 152 (2006), Part 10]
[Senate]
[Pages 13065-13066]
[From the U.S. Government Publishing Office, www.gpo.gov]




                         WESTERN ENERGY CRISIS

  Ms. CANTWELL. Mr. President, last night consumers in Washington State 
received welcome news; that is, that the Federal Energy Regulatory 
Commission decided, after 5 long years, that the ratepayers of 
Snohomish County, WA, do not have to pay Enron $120 million for power 
that it never delivered during the western energy crisis, for which it 
sought to charge exorbitant power rates.
  The western energy crisis was certainly a tragic chapter, 
demonstrating corporate greed and the need to make sure we have 
regulatory fairness. This fight goes back to the spring of 2001. Since 
then, I have been working, along with my colleagues from the Pacific 
Northwest and other parts of the country, to make sure that ratepayers 
were treated fairly. There were many stops and starts in the process. 
There were times when our faith in the process began to erode.
  But one of the high points came last summer when the Senate Energy 
Committee came together in an unprecedented effort to debate and pass 
an amendment that basically protected ratepayers throughout the 
country, to make sure they had a fair shot at justice. This was an 
important amendment I offered, which made sure that everyone understood 
that the federal energy regulatory authority was the proper place to 
decide whether utilities such as Snohomish County PUD should have to 
pay Enron for power at exorbitant rates, resulting from Enron's market 
manipulation.
  I know the Chair knows this issue well and knows there were many 
other parts of the country that also were impacted by the same issues. 
That is why I want to make sure that we give thanks to all the people 
who played a constructive role in the debate: Certainly, I thank 
Senator Ensign, whose ratepayers in Nevada were facing a similar 
situation; of course, Senator Reid; Chairman Domenici, who ran the 
Energy Committee in a fair and open way that allowed us to have a 
serious debate. The chairman deserves credit, along with the ranking 
member, Senator Bingaman, for his focus on consumer protection; Senator 
Smith, Senator Craig and Senator Allen, Senators Wyden and Murray, and 
all my Democratic colleagues on the Committee.
  We also had some incredible help and support from the Energy 
Committee counsel and staff: Chief counsel Sam Fowler and Judy 
Pensabene, along with other in-depth analysis from Leon Lowery and Lisa 
Epiphane. These staff people helped us wade through a very challenging 
legal issue but, in the end, made sure that federal authority stayed 
where it was, and that that Federal entity gave the ratepayers a chance 
at the important relief they needed.
  The other side of the story is that of the Snohomish County PUD, this 
is a David and Goliath story, of a small utility that did the job of 
taking on a big power company. This utility said that it was not going 
to be forced to pay manipulated power rates. They fought for the 
ratepayers of their State and for justice to make sure that this never 
happens again to consumers in America. It shows that sometimes the 
little guy can win. It shows that the Snohomish County PUD fought back 
against this fraudulent $122 million bill, and was vindicated in the 
process.
  It was an important battle for them to fight, for the average 
Snohomish County resident who would have been forced to pay over $400 
additional to Enron in utility rates; and for the county's school 
districts that would have seen a $2.5 million increase in electricity 
costs. That is money that can otherwise go to hiring teachers or paying 
for books. And for the businesses and other ratepayers in this county 
who were impacted economically by the exorbitant rates we have been 
paying from the western energy crisis and Enron's manipulation, last 
night's announcement will bring a big sigh of relief.
  Now we need to make sure that we get on with the task of making sure 
that this never happens again. When it comes to energy markets that 
drive our economy, aggressive consumer protection must be part of 
Federal regulators' overall objective, when overseeing the wholesale 
electricity markets. It is far better that we continue to make sure the 
Federal regulators do their job. If that is what Congress needs to do 
by passing amendments such as the Cantwell amendment, we will continue 
to do so.
  We also took some important steps in the Energy bill last year by 
saying that there is a Federal ban on market manipulation; that is, 
when it comes to electricity markets and natural gas markets. This 
Senator believes there is still more to be done in other energy 
markets. Just this morning we woke up to news that BP North America has 
been indicted for manipulation of propane markets. This is a case that 
is just starting to be made, but we will hear the evidence.
  Our work is not done until we make sure that the Commodity Futures 
Trading Commission, the Federal Trade Commission, and other Federal 
agencies have all the tools they need to make sure there is 
transparency in energy markets; to make sure that propane, jet fuel, 
oil, diesel, gasoline markets, all are protected with the transparency 
and oversight necessary to make sure consumers aren't impacted by 
market manipulation. In the end, it is the American consumer and the 
American economy that suffer when we don't have functioning energy 
markets.
  I look forward to working with my colleagues to continue to make sure 
that we protect consumers from exorbitant energy rates, that we do our 
job at the Federal level to enforce the law and uphold those standards 
that make these markets work and continue to help our economy grow.
  Again, I thank all those who were helpful in the long process to 
bring justice for ratepayers in the State of Washington and all those 
who sought to give a good helping hand in the effort to make sure that 
our Federal laws were held up, implemented, and that we didn't allow 
this issue to continue to be punted around a variety of bankruptcy 
courts. But instead, we made sure that justice was delivered to the 
ratepayers.
  I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. BAUCUS. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.

[[Page 13066]]

  The PRESIDING OFFICER. Without objection, it is so ordered.

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