middleman profits. Companies with power plants can compete for contracts to provide the bulk of our power at reasonable prices that reflect costs. People say that Governor Davis has been vindicated by the Enron confession.”
Enron eventually went bankrupt, and signed a US.52 billion settlement with a group of California agencies and private utilities on July 16, 2005. However, due to its other bankruptcy obligations, only US2 million of this was expected to be paid. Ken Lay was convicted of multiple criminal charges unrelated to the California energy crisis on May 25, 2006, but he died due to a massive heart attack on July 5 of that year before he could be sentenced. Because Lay died while his case was on federal appeal, his record was expunged and his family was allowed to retain all its property.
Enron traded in energy derivatives specifically exempted from regulation by the Commodity Futures Trading Commission. At a Senate hearing in January 2002, Vincent Viola, chairman of the New York Mercantile Exchangehe largest forum for energy contract trading and clearingrged that Enron-like companies, which don’t operate in trading “pits” and don’t have the same government regulations, be given the same requirements for “compliance, disclosure, and oversight.” He asked the committee to enforce “greater transparency” for the records of companies like Enron. In any case, the U.S. Supreme Court had ruled “that FERC has had the authority to negate bilateral contracts if it finds that the prices, terms or conditions of those contracts are unjust or unreasonable.” Nevada was the first state to attempt recovery of such contract losses.[citation needed]
Enron Trader Tapes
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