United in House against Enron

WASHINGTON — Partisan rancor may rule in most of Congress, but the state's nine-member House delegation hung together against Enron yesterday to support an amendment that could save Snohomish County utility ratepayers $125 million in fees to the bankrupt energy company.

In signing a letter backing a provision in the energy bill, the state's three Republicans bucked two of the most powerful House GOP chiefs, Commerce Committee Chairman Joe Barton and Majority Leader Tom DeLay, both of Texas.

Reps. Jay Inslee, D-Bainbridge Island, and Doc Hastings, R-Pasco, worked the delegation to get unanimous support. Inslee applauded his GOP colleagues.

"This took a lot of courage," Inslee said.

Both Barton and DeLay oppose the amendment. "With everyone on board, we are getting a bit of the upper hand here in escaping the tentacles of Enron," Inslee said.

Hastings declined to comment.

The amendment was introduced by Democratic Sen. Maria Cantwell. It passed the Senate two weeks ago but hit a wall in Barton's committee.

The provision would give the Federal Energy Regulatory Commission (FERC) authority to determine whether a public utility must pay termination fees to end a wholesale-energy contract early. Enron assessed the $125 million fee after the Snohomish County Public Utility District canceled its energy contract with the company in 2001.

Cantwell's amendment is among a handful of controversial issues stalling the energy bill's passage. The sides are so entrenched that House and Senate conferees working to negotiate a final bill decided not to address the issues yesterday during a hearing packed with lobbyists.

Instead, they'll be argued behind closed doors today and tomorrow by the "Big Four," the Democratic and Republican House and Senate energy-committee leaders. If they reach any agreements, the conference committee will hold an unusual Sunday session to vote.

The Cantwell amendment could save more than $500 million in contract-termination fees for Snohomish County, most of Nevada and some utility districts in California. FERC has already determined that Enron manipulated the energy markets to inflate prices there.

"FERC must be recognized as the rightful regulator of the wholesale power market in order to ensure that large corporations, such as Enron, are not able to make unjust power contracts that are contrary to public interest," said Rep. Cathy McMorris, R-Spokane.

But Enron's creditors and several oil and gas companies, who are important contributors to the GOP, have lined up to limit FERC's power. And even though Enron is in bankruptcy, it has hired a lobbyist to undo Cantwell's work.

Inslee complained that Barton is pushing for Enron's allies and denounced a so-called "sanctity of a contract" clause included in the House version of the bill. It would effectively prevent FERC from allowing public utilities to escape contract cancellation fees, even if the contracts were deliberately inflated.

"It's the most offensive thing I've seen," Inslee said, adding that the clause is ambiguously worded. "Should it pass, Enron's lawyers will be arguing that it should be retroactive" to the Snohomish dispute, he said. "These people are nothing if not clever."

Barton's spokesman Larry Neal said that Barton was the target of an unfair attack.

"It seems plain that Sen. Cantwell is wrangling with a problem, but Joe Barton is not the cause and not the solution. She and her staff need to find somebody else to bash," Neal said.

Alicia Mundy: 202-662-7457 or amundy@seattletimes.com