TIMELINE OF HARVARD-ENRON INVOLVEMENT IN DEREGULATION SCHEMES1993
Harvard establishes the Enron-funded Harvard Electricity Policy Group (HEPG) at its Kennedy School of Government (KSG). This is during the period when Robert Belfer, long-time Enron director and the company's largest shareholder, sits on the KSG's Visiting Board overseeing the school. HEPG begins producing and promoting what now total 1,000 reports on electricity deregulation, with at least 70 focusing specifically on California.1994
Jan, Sept:
Enron executive Jeffrey Skilling presents two proposals for energy deregulation in California and elsewhere at HEPG events.
Aug:
HEPG's research director, William Hogan, urges the California Public Utilities Commission (CPUC) to deregulate its electricity market according to what he calls the "Enron model" — precisely the model that Enron had already used to deregulate and manipulate the gas market.Skilling endorses Hogan's suggestion to the CPUC, helping to consolidate a consensus.
New England utilities hire Hogan to participate in industry planning talks. Hogan steers the talks toward a deregulation agenda, and publicly announces that "About the only thing that won't change over time is that when you flip the switch the lights will still go on."
1995
July:
Hogan endorses the CPUC plan.
Dec:
CPUC votes to deregulate the electricity market.1996
Aug:
Hogan leads a delegation to FERC's conference in Washington, D. C. to push for California deregulation.Sept:
Hogan tells California's elected officials, "If it comes down to a take-it-or-leave- it decision, then my advice is to take it." ° California's Governor Pete Wilson signs deregulation legislation.1997
Enron launches a national advertising campaign to promote electricity deregulation. Hogan advises Congress not to pass legislation restricting deregulation. HEPG Executive Director Ashley Hogan complains to the Boston Globe that New England deregulation is not moving quickly enough.1998
California deregulation takes effect, as utilities divest of generating plants. Consumer prices remain capped until this process continues; it is expected to finish by 2002.Sept:
HEGP produces the first of two reports hailing California for providing "reliability through markets."
Hogan advocates deregulation in Montana, a state where electricity prices are already so low that MIT economist Paul Joskow admits, "I don't know of anyone that can provide power cheaper." Montana's deregulation scheme eventually sends wholesale prices to ten times their former levels and causes 1,000 workers to lose their jobs.1999
Summer:
San Diego Gas and Electric becomes the first major utility company to lift consumer price caps. Over the next year, as wholesale prices climb, San Diego consumers see their electric bills triple.Nov:
HEGP produces the second of two reports hailing California for providing "reliability through markets."2000
May:
California's electricity crisis begins. Recent memos released indicate that Enron was manipulating the market to increase its profit, and in the process exacerbating the crisis for the public.July:
Hogan and Skilling publicly oppose price caps to protect consumers.
Oct:
HEPG Executive Director Ashley Brown testifies with Enron's Director of Government Affairs for the Americas to the Vermont Public Service Board, which oversees electricity policy for the state.2001
Jan:
Hogan tells the Los Angeles Times that he opposes long-term energy contracts in California which would insulate against the volatility of prices and services delivered by the deregulated market.March:
Hogan testifies on Enron's behalf to the Texas Public Utilities Commission to guide that state's deregulatory process.March:
HEPG and Enron present on privatization and deregulation at the Brazil Energy 2001 Conference.June:
Hogan opposes price caps for California in June testimony to Congress.Enron leads energy producers and marketers in campaign contributions and lobbying expenses for elections in California, spending $645 million (http:// www. commoncause. org/ publications/ may01/ castudy. htm). The company would stand to lose if price caps and other re-regulatory measures were introduced. California introduces price caps, and prices fall.
Questions about Enron's finances emerge, and Enron declares bankruptcy.
William Hogan
Harvard affiliation:
Professor, Kennedy School of Government; Research Director, Harvard Electric Policy Group (HEPG)Enron affiliation:
HEPG receives Enron funding; HEPG has promoted proposals for deregulation in California and elsewhere by Enron's Jeffrey Skilling; Hogan has testified for Enron to state regulatory boards; Hogan worked closely with Enron to design and promote deregulatory schemes in California and elsewhere.Robert Rubin
Harvard affiliation:
AB, Harvard, 1966; Honorary Doctorate, 2001; former Director, Harvard Management Company; most recent addition to Harvard Corporation.Enron affiliation:
Chairman of the Board, Citigroup (Enron's largest creditor); Established relationship with Enron CEO Kenneth Lay in late 1980s while at Goldman, Sachs, a major Enron financier; Lay offered Rubin a position on Enron's board; as Enron collapsed, Rubin asked a former employee at the Treasury Department to intercede to maintain the corporation's credit ratings; involved in CA deregulation crisis as an advisor to Governor Gray Davis.Lawrence Summers
Harvard Affiliation:
Ph. D., Harvard, 1982; Harvard Professor, 1983-1991; Harvard University President and member of the Harvard Corporation.Enron Affiliation:
As U. S. Treasury Secretary, promised Enron CEO Kenneth Lay that "I'll keep my eye on power deregulation and energy-market infrastructure issues." Consulted with Goldman, Sachs when the firm was becoming a major Enron financier; it is unknown whether he provided research or advice on Goldman's Enron account.http://www.people.fas.harvard.edu/~skomarov/harvardwatch/deregulation_deception_appendices.pdf