Editorial
Goosing FERC over energy charade

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The U. S. Senate sent a strong, bipartisan signal that the kind of market shenanigans that contributed to the Western energy crisis should be illegal.

Sen. Maria Cantwell's amendment to the agriculture appropriations bill, approved by a 57-40 vote, clarifies Congress' intent about the national regulator's role in ensuring just and reasonable rates in energy markets.

The Federal Energy Regulatory Commission ruled in June that market manipulation by Enron and others created the energy crisis of 2000-01. On the same day, in a 2-1 vote, FERC commissioners upheld long-term energy contracts negotiated during the widespread charade.

That means utilities throughout the West still are on the hook for at least $500 million in long-term contracts with chief bad-actor Enron alone. Snohomish County PUD is trying to get out of $120 million in contracts with Enron, and several other utilities were victimized.

At the time, FERC's lone dissenter, Commissioner William Massey, scolded his colleagues:

"Protecting contracts entered into in this horribly tainted environment violates the Federal Power Act's forceful declaration that contracts are absolutely unlawful and must be reformed if not just and reasonable."

He was right. Lawmakers should heed Thursday's Senate action and clarify Congress' intent with regard to FERC's role. House and Senate negotiators could add the provision to the energy bill in conference committee, or the House could approve a similar amendment to its agriculture appropriations.

This move is a no-brainer. What Enron and other market manipulators did was reprehensible and their victims should be given relief.

Copyright © 2003 The Seattle Times Company