Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - June 2, 2004
Contact:  Governor's Communications Office, 360-902-4136

Gov. Gary Locke’s Statement on Disclosure of Enron Conversations

Gov. Gary Locke, in Europe to promote two-way trade and tourism for Washington state, today issued the following statement on the release of recorded conversations among Enron energy traders indicating they conspired to manipulate energy markets during the 2001 West Coast energy crisis:

“I am outraged by the taped audio conversations revealed yesterday that appear to show Enron traders in the act of manipulating power markets during the West Coast power crisis. If true, these tapes are proof of what many of us have been saying all along – that energy interests deliberately manipulated prices.

“The disclosure of these taped conversations illustrates the failure of the Federal Energy Regulatory Commission to adequately monitor and regulate power markets during the energy crisis. In early 2001, I asked that President Bush and Secretary of Energy Spencer Abraham step in to stabilize the market by implementing temporary price controls on wholesale electricity. They refused to act. The economy in the Northwest is still suffering because of these failures. Long-term power contracts established with these exceptionally high power prices should be terminated or renegotiated.

“Today’s announcement of a six percent cut in wholesale electricity rates by the Bonneville Power Administration is a step in the right direction, however it barely begins to address the inflated prices Washington businesses and ratepayers continue to pay due to market manipulation.

“It is disappointing that it took the perseverance of the Snohomish County Public Utilities District to bring these tapes to light. FERC should have discovered and disclosed them on its own. I hope they take these revelations seriously and investigate thoroughly. The ratepayers of Snohomish County, as well as those of other utilities that were similarly hurt, should receive the compensation they deserve.”

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