Feingold Cosponsors Bill Outlawing Energy Market Manipulation Legislation Would Strengthen Oversight of Energy Trading and Increase Protection of Consumers January 25, 2005 Washington, D.C. -- U.S. Senator Russ Feingold (D-WI) is cosponsoring legislation that would require the Federal Energy Regulatory Commission to prohibit the use of manipulative practices that put both consumers and the reliability of the electricity transmission grid at risk. The Energy Needs Regulatory Oversight Now (ENRON) bill, authored by Senator Maria Cantwell (D-WA), comes in response to last year's release of taped conversations between Enron energy traders bragging about stealing money from consumers, as well as the high energy costs the nation currently faces. Feingold cosponsored similar legislation last year and was part of an effort urging Senate leadership to address the issue. "Last summer, the release of audiotapes of Enron traders gloating about their ability to manipulate energy markets shocked the nation," Feingold said. "As more tapes surface and energy prices continue to rise, the need for the Senate to pass the ENRON Act has never been more clear." Last summer, the Justice Department released tapes indicating that Enron Corporation manipulated energy markets and gouged customers. According to these tapes, Enron traders celebrated when a forest fire shut down a major transmission line into California in 2000. This shut-down cut power supplies and raised energy prices. The taped conversations also provided evidence that Enron made secret pacts with power producers and that Enron traders deliberately drove up prices by ordering power plants to shut down. "We need to send a clear message to the energy industry that this behavior will not be tolerated, and we must show consumers that we will protect them from energy market manipulation," Feingold said.

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