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<DIV><FONT size=4><FONT size=3><STRONG><FONT face=Arial>SEATTLE
POST-INTELLIGENCER<BR></FONT></STRONG>http://seattlepi.nwsource.com/national/179636_enron26.html<BR><BR></FONT><FONT
face=Arial,Helvetica size=4><B>House blocks refunds in Enron
case</B></FONT><FONT size=3> </FONT>
<P><FONT face=Arial,Helvetica size=2><B>After heated debate, documents to be
unsealed</B></FONT></P>
<P><FONT face=Arial,Helvetica size=2><I>Saturday, June 26, 2004</I></FONT></P>
<P><FONT face=Arial,Helvetica size=2><B>By CHARLES POPE</B><BR>SEATTLE
POST-INTELLIGENCER WASHINGTON CORRESPONDENT</FONT></P>
<P>WASHINGTON -- The House, after a blistering face-off in which Democrats
accused the White House of coddling Enron Corp., yesterday refused to order
refunds for millions of Western consumers who were victimized by an artificial
energy crisis in 2000 and 2001.</P>
<P>Republicans refused to allow the measure to come to a vote, insisting that
Democrats were only attempting to embarrass President Bush and Republicans for
their once-close ties to Enron. Moreover, they said that the Federal Energy
Regulatory Commission is working hard to build a case against Enron and that
Democrats should allow the agency to complete its mission.</P>
<P>"This isn't a witch hunt, it shouldn't be a witch hunt," Rep. Doug Ose,
R-Calif., said. "Come over here and help us find solutions. We cannot sit here
flailing away at past history."</P>
<P>Democrats, however, maintained that the ties between Enron and the Bush
administration are directly related to what they consider a lax approach from
regulators to repair the damage caused by Enron's actions.</P>
<P>"We have crimes but what we don't have is restitution," said Rep. Peter
DeFazio, D-Ore., adding that Enron executives have gone to jail for manipulating
the market yet, three years after the fact, no payments have been ordered and
expensive power contracts are still in force.</P>
<P>"We are still paying more for our electricity day in and day out. Nothing is
more detrimental to the economic recovery of the Pacific Northwest than the fact
that we're still paying more than we should for our electricity because it was
stolen from us by the Enron Corp. based in Texas," DeFazio said from the House
floor.</P>
<P>"And no relief has been granted by the Federal Energy Regulatory Commission
led by Pat Wood of Texas who was recommended for that job by Ken Lay of Enron
... who was the largest lifetime contributor to George Bush, the president of
the United States. This stinks."</P>
<P>The politically sensitive issue of how to deal with Enron erupted as the
House considered a $28 billion measure for energy and water programs. Because
FERC, which regulates electricity markets, is part of that spending bill,
Democrats sought to add language demanding that the agency order refunds to
consumers in Washington, California and other Western states whose bills
skyrocketed after Enron manipulated supplies.</P>
<P>Instead of the more ambitious provision backed by Democrats, the House
adopted by voice vote a watered-down version that calls on federal regulators to
make public thousands of documents detailing how the company manipulated Western
energy markets. Lawmakers from both parties have complained that FERC has sealed
documents as part of its investigation.</P>
<P>House aides said it's likely the language will remain in the final bill
because in an election year Republicans want to show they are tough on
Enron.</P>
<P>Some documents have become public in recent weeks, fueling demands that more
be made available. The most combustible ones were jointly released by Sen. Maria
Cantwell, D-Wash., and the Snohomish County Public Utility District two weeks
ago. The PUD has sued Enron to void a contract that it signed for electricity
that was exorbitantly priced because of Enron's manipulation.</P>
<P>The tapes and documents show that Enron traders engaged in market
manipulation nearly every day from January 2000 to June 2001 at a cost to
Washington state consumers estimated to be $1.1 billion.</P>
<P>"The FERC is not just sitting on its hands, it's literally sitting on
evidence that could help protect people from getting robbed by Enron again," she
said after the vote. "The FERC should be put on notice that it is high time the
commissioners start doing their jobs to protect consumers. The vote today in the
House is a step in the right direction."</P>
<P>Despite the debate's sharp tone, Democrats knew they would not prevail on
their attempts to obtain refunds. The House Rules Committee, which determines
which amendments can be offered during floor debate, ruled Thursday night that
the amendment offered by Rep. Anna Eshoo, D-Calif., was out of order.</P>
<P>Democrats sought to overcome that ruling by demanding a vote of the full
House. They lost that vote, 209-182. Rep. George Nethercutt, R-Wash., was the
only Republican voting with Democrats to bring the amendment to the floor.</P>
<P>Democrats suggested that while the company has been disgraced and sent into
bankruptcy, Republicans are still protecting Enron.</P>
<P>"They understood whose side their bread was buttered and they got what they
wanted," Rep. Jay Inslee, D-Wash., said, referring to Enron's corporate support
for Bush when he was running in 2000 and after he came to office. "They got an
administration that sat on their hands while Enron got into our pockets to the
tune of over $8 billion and they did nothing."</P>
<P>
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<P><I>P-I Washington correspondent Charles Pope can be reached at 202-263-6461
or charliepope@seattlepi.com</I></P>
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