Reply #36: Tapes reveal Enron's secret role in California's power blackouts [View All]

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Julian Borger in Washington
Saturday February 5, 2005
The Guardian

Newly discovered tapes have revealed how the energy corporation Enron shut down at least one power plant on false pretences, deliberately aggravating California's crippling 2001 blackouts with the aim of raising prices.

The tapes also show that Enron, whose bankruptcy three years ago was the biggest corporate scandal of recent times, manipulated energy markets in Canada and was planning to rig the Californian market even before deregulation in 1998, for which the Texan corporation actively campaigned.

The most damning revelations concern Enron's secret role in creating artificial power shortages in California, helping to trigger an energy crisis in 2000 and 2001 which cost residents billions of dollars in surcharges.

The crisis ultimately led to the ousting of the state's Democratic governor, Gray Davis, and paved the way for rise of Arnold Schwarzenegger in his place. Meanwhile, the shortages helped Enron to make $1.6bn (£850m).

http://www.guardian.co.uk/enron/story/0,11337,1406480,00.html