Statement by Senator Feinstein
- On New Enron Documents About Enron Trading Strategies in California -
May 6, 2002

"My suspicions have been high for some time that Enron was fraudulently manipulating the California energy market for its own benefit. To that end, in the wake of this new information from FERC, I am asking Attorney General John Ashcroft to pursue a criminal investigation to determine whether in fact federal fraud statutes or any other laws were violated by Enron.

Through the course of the crisis in California, the total cost of electricity soared from $7 billion in 1999 to $27 billion in 2000 and $26.7 billion in 2001. And now, as we learn more about Enron's trading practices, it is becoming increasingly clear that there were not adequate safeguards to protect California consumers.

These new documents point out a number of troubling strategies utilized by Enron, including 'death star' which is described as a system by which Enron would get paid for moving energy to relieve congestion without actually moving any energy or relieving any congestion.

Obviously, further investigation is needed. But what has come to light so far further demonstrates the need for adequate oversight and regulation of the energy marketplace and for prosecution if it is determined any laws were broken."

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