Avista-Enron case different than El Paso

The Spokesman-Review | December 7, 2002 | Bert Caldwell, Staff Writer

[lilylangtree]

The pending settlement of one case related to Enron Corp. manipulation of West Coast electricity markets will have no bearing on a parallel case involving Avista Corp., a spokesman for the Spokane, WA company said Friday. Hugh Imhof said none of the facts alleged against El Paso Electric Co. by the Federal Energy Regulatory Commission (FERC) overlap those in the Avista case. Avista, he added, is meeting with FERC's trial staff to resolve concerns raised by electricity trades involving Avista, Enron and Portland General Electric in the spring of 2000. "We've been working toward a resolution of this case since the beginning," Imhof said.

Thursday, El Paso agreed to refund $14 milion in revenues earned on sales of electricity. The Texas company also agreed to forgo power sales in wholesale electricity markets for two years. If FERC accepts the deal negotiated by its trial staff, El Paso will have put to rest federal claims the utility allowed two Enron affiliates to use its facilities in a scheme to exploit the wholesale electricity market in California. That investigation was launched Aug 13, 2001, the same day another order authorized a probe into Avista's role as middleman in trading between Enron and Portland General. Enron owns Portland General. Commission rules bar direct trading between related companies. Enron traders evaded the rule by selling the power to Avista, which then sold the power to Portland General. The process was then reversed, and the power ended up back in the hands of Enron. The exchanges were part of a strategy Enron labeled "Death Star" that, by creating phantom overloads on Califonria's electricity grid, garnered Enron--in just two months--$33 million in congestion fees paid companies that agreed to help ease apparent crises.

Avista, which has denied any wrongdoing, earned about $2,500 in fees from the Enron-Portland General transactions. "Our position is we feel like we did everything properly," Imhof said. He said Avista has no comment on the El Paso settlement.

[lilylangtree]

Strangely, two days before FERC publicly announced the investigation into Avista's practices related to the Enron scandal, a highly-touted member of Avista's board of directors that specialized in trading of energy, resigned. Further, in October 2001, the Washington Utilities Transportation Commission granted a phenomenal 37.5% hike in rates over the 100% objections of the consumer base. Also, of the 37.5% hike in rates, only 11% went for normal operating increases in energy rates. What is the other 26.5% increase going for? Who knows? However, this company smells like Enron-corruption from "head to toe."

[Fish out of Water]

ping

[Phyto Chems]

Nice post/comments.

I live in Pullman, Wa and wondered what was up; I did not keep that close of eye on this when they wanted the increase, although I did see it in my monthly bill, it shot up from the previous year. But what I find VERY Interesting is that they just reduced there their rates, so my bill now looks like what I had been paying there abouts.

[lilylangtree]

Consider yourself lucky. My bill from October to November was over 100% (from $64 to $132) doing nothing different in that one month's time. From December (2001) to January (2002), my bill went from $132 to $248. An Avista employee showed me a chart of my usage. My usage is lower from the previous years but my cost has skyrocketed. After receiving my November bill, I lowered my thermometer to 65 degrees where I use to keep it at a constant 70 degrees. Should be interesting to see the results. Something seriously wrong is occurring at Avista.

[Ernest_at_the_Beach]

Thanks for the ping!

lilylangtree - Thanks for posting this!

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