Sen. Maria Cantwell requests more Enron tapes

By Christopher Schwarzen
Times Snohomish County bureau

E-mail this article Print this article Search archive Most e-mailed articles

The Snohomish County Public Utility District, which released written transcripts of about eight weeks' worth of the tapes in May, said it and other utilities need the tapes to further their legal cases against Enron, an energy trader now seeking bankruptcy.

On the tapes, Enron day traders can be heard laughing and joking about how the company was manipulating the markets while many West Coast residents sat in the dark because of blackouts and increased rates. The PUD says the taped conversations show how Enron controlled energy supplies to the West Coast, causing more demand and higher prices.

Warning The complete transcripts of Enron trader conversations, obtained by the Snohomish County P.U.D., contain multiple instances of coarse and graphic language, as do the audio excerpts of these conversations. The Seattle Times is posting these transcripts in their entirety. Continue to audio and transcripts

Enron officials even requested PUD employees' assistance to further manipulate the market but to no avail, PUD officials have said.

The PUD said it was concerned that employees might have helped Enron and that was another reason it wanted the tapes.

The Justice Department would not say yesterday how many hours of tapes exist and offered no comment on Cantwell's request because of pending criminal actions against Enron employees. Two former Enron day traders have pleaded guilty to one count of wire fraud, while another trader is expected to stand trial in October.

The PUD is fighting a $122 million lawsuit filed by Enron. The energy marketer, now known to be partly responsible for the West Coast energy crisis, says the PUD illegally ended a nine-year, $225-million contract. The PUD canceled the contract after evidence of market manipulation surfaced.

The PUD says it got the tapes from the Justice Department in exchange for transcribing them.

The problem the PUD faces, Cantwell and PUD officials said yesterday, is that creditors seeking money from Enron in bankruptcy court want the PUD to pay the $122 million fee. The PUD wants to end the suit against it and join with creditors seeking to recoup losses from Enron.

"So far the Federal Energy Regulatory Commission has offered us no relief," said PUD attorney Mike Gianunzio. "We're hoping the 9th Circuit Court of Appeals will rule in our favor to end the lawsuit, so that we ourselves can file against Enron in bankruptcy court."

Other utilities expect to use the materials in their request to collect part of a $3 billion refund account FERC is collecting. FERC has allowed utilities to file for refunds for Enron's overcharges after June 25, 2003.

Rep. Jay Inslee, D-Bainbridge Island, has said he will introduce an amendment to the energy bill that would push that refund date back to 2000. Inslee hopes the tapes will lead to increased support for the amendment.

Christopher Schwarzen: 425-783-0577 or cschwarzen@seattletimes.com

Copyright © 2004 The Seattle Times Company

E-mail this article

Print this article

Search archive

More local news headlines...