California Ordered to Refund Enron $270M

[gatorboy]

SACRAMENTO, Calif. - As California struggled through the 2000-2001 energy crisis, Enron traders gloated about gouging the state. Now state Attorney General Bill Lockyer says federal regulators are heaping insult upon injury by demanding California pay Enron and other energy companies almost $270 million in refunds.

http://story.news.yahoo.com/news?tmpl=story&cid=509&ncid=509&e=32&u=/ap/20040616/ap_on_bi_ge/energy_refunds_2

Gee isn't that nice of them?

[LittleApple81]

1. I DON'T EVEN WANT TO READ THIS CRAP! IT IS TOO CRAZY FOR WORDS!!!

[Beetwasher]

2. This Is One Of Those Too Fucked Up To Even Wrap Your Mind

around stories...straight outta the twighlight zone...

[Xithras]

8. I think I've got this worked out...an explanation:

The FERC looked at the wholesale electricity prices being charged in 2000-2001, subtracted out the fraud, and came up with a fair baseline price for that energy. They are now ordering that ALL energy traders who sold power above this fair market price must refund the difference to the buyers.

During the energy crunch, the ISO bought and sold power on the open market at the same inflated prices it paid for them. It did this ostensibly to prevent rolling blackouts, but there were periods where it found itself with excess capacity and resold that capacity on the open market. Because it sold that power at prices above the newly established baseline, California too must refund the difference to the corporations it sold power to...corporations that include Enron, Dynegy, Duke, and others implicated in driving up the prices in the first place.

However, this IS NOT AS BAD AS IT SOUNDS. The ISO resold its power at cost, and never attempted to profit from its power dealings. It sold $270 million worth of power over the baseline because the state itself was charged $270 million over that baseline when it bought the power in the first place. We may have to pay out the money, but it will be refunded by whichever company it was that overcharged us for it in the first place. There is zero net loss to the state.

[KittyWampus]

3. One Hopes There's A Lawsuit Here & That Arnold Gets A Subpoena

[Warren DeMontague]

4. Bend Over, Grandma motherf)%(*(@)%&in' Millie...

We're gonna @*%&%&^$ you up the *&&$^^#$ AGAIN! Yee-haw!

[olddem43]

5. Enron was a criminal enterprise

and in a sane world should be entitled to nothing. Wonder what the Bush would say about this situation? Does Ken Lay get the money?

[Divernan]

10. Very important point - one cannot sue to enforce a criminal contract.

The law (civil court - where business contracts are enforced) does not permit suit to collect debts owed for criminal/illegal acts. Enron's dishonest/deceitful price gouging constituted an illegal/criminal act. Further, their acts constituted a material, substantive breach of contractual terms, rendering it's contracts with the state of California NULL, VOID and UNENFORCEABLE IN STATE OR FEDERAL COURTS!

This legal principle is the same one which prevents civil suit to enforce gambling debts where the form of gambling (bookies) is illegal.

[bleedingedge]

6. Misleading Headline...

The real refund to Enron is $23 million. The larger figure is a combined refund to six different energy companies.

Still and all, were I the governor of California, my reply to Enron would be a curt "How would you like to suck my balls?"

[GreenPartyVoter]

9. Welcome to DU. Too bad Ahnold isn't likely to say that

seeing as how he was all pro-Enron way back when and everything.

[bleedingedge]

7. D'oh...accidental double post <eom>

On Edit: Removed body of message.