frontline: blackout: the new new power business



		Bush Advisers on Energy Report Ties to Industry June 3, 2001 By JOSEPH KAHN At least three top White House advisers involved in drafting President Bush's energy strategy held stock in the Enron Corporation or earned fees from the large Texas-based energy trading company, which lobbied aggressively to shape the administration's approach to energy issues.

		Power Trader Tied to Bush Finds Washington All Ears May 25, 2001 By LOWELL BERGMAN and JEFF GERTH Enron, the nation's largest electricity trader, has become close enough to the Bush administration to possibly have influence on federal energy policy.

		Signs of Abuse Seen by Judge in Gas Case May 16, 2001 By RICHARD A. OPPEL Jr. Internal documents submitted as evidence that the El Paso Corporation artificially inflated natural gas prices in California suggest that the company did intend to manipulate prices, a judge hearing the case said.

		California Utility Says Prices of Gas Were Inflated May 9, 2001 By RICHARD A. OPPEL Jr. and LOWELL BERGMAN One of California's struggling utility companies accused the El Paso Corporation yesterday of artificially inflating the price of natural gas in the state by $3.7 billion over the last year by using its partial control of a major pipeline to curtail the flow of gas.

		Power Concern Offers California a Secret Deal May 2, 2001 By JEFF GERTH and LOWELL BERGMAN Duke Energy, a power-generating company accused of overcharging customers millions of dollars during California's year-old energy crisis, has secretly offered Gov. Gray Davis a deal that it hopes will solve its legal problems while helping to calm the state's chaotic electricity markets.

		Power Woes Raise Questions Over Control of Gas Pipelines March 26, 2001 By RICHARD A. OPPEL Jr. and LOWELL BERGMAN Many industry officials question whether regulated pipeline companies are able to favor unregulated sister companies that trade natural gas and are free to maximize profits.

Here's a summary of the new generation of energy trading companies who are revolutionizing the power industry. They have created a new market, trading not only in electricity, but also in a variety of commodities, from risk management on the weather to emissions allowances. And they're making quite a profit in the process.

In the 2000 campaign cycle, the energy industry gave 78 percent of its political donations to former oil businessman George W. Bush and the Republicans. The gas and oil sector alone donated $1.8 million to Bush's campaign, more than 13 times what it gave to Al Gore. Here's a look at the numbers.

In the wake of allegations about price manipulation and actual withholding of electric power and natural gas in the California market by large energy generators and natural gas suppliers, there are a number of investigations underway by state agencies and federal regulatory authorities. Here's a rundown of the ongoing investigations.

Lay was Enron Corp.'s first chairman and chief executive officer, taking the helm of the Houston company in 1986. Enron is a leader in the so-called energy merchant sector, where companies trade wholesale electricity and hedge risks by charging its customers premiums to insulate them from price fluctuations. In 2000, Enron's annual revenues surpassed the $100 billion mark, more than doubling its revenue of $40 billion in 1999. Critics charge that Enron earned such record revenues by exploiting the California market.

Skilling joined Enron in 1990, and in February 2001 he became the company's president and chief executive officer. In the regulated electricity markets, says Skilling, consumers were paying twice as much as they should have for power. But since power transmission is a natural monopoly, he says, regulation is necessary in order to ensure that companies have open access to the pipes.

Glynn is chairman and chief executive officer of PG&E Corp., which owns California's Pacific Gas and Electric Company. In April 2001, Pacific Gas & Electric filed for bankruptcy, declaring that it had accumulated $9 billion in debt. Critics, however, say that at the height of the crisis in California when energy prices were soaring, PG&E Corp. diverted Pacific Gas & Electric profits to another one of its subsidiaries, National Energy Group of Bethesda, Md., in effect creating a protective "ring fence" around those diverted monies. National Energy Group, meanwhile, now reportedly ranks as the nation's third-largest power trader.

Priory is chairman and chief executive officer of Duke Energy, a power-generating company based in North Carolina. He believes that a deregulated, free market in electricity is the only way to send appropriate signals to consumers and to normalize power supply and demand. Like Enron Corp., Duke Energy's annual revenues increased dramatically, rising from $21 billion in 1999 to $49 billion in 2000.

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