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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5049 Introduced in House (IH)]

108th CONGRESS
  2d Session
                                H. R. 5049

   To require the Federal Energy Regulatory Commission to revoke the 
 authority granted to Enron to sell electricity at market rates and to 
  prohibit Enron from enforcing certain contract provisions, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 9, 2004

Mr. Inslee (for himself, Mr. Larsen of Washington, Ms. Berkley, and Mr. 
    Honda) introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL

 
   To require the Federal Energy Regulatory Commission to revoke the 
 authority granted to Enron to sell electricity at market rates and to 
  prohibit Enron from enforcing certain contract provisions, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CONGRESSIONAL FINDINGS.

    The Congress finds that:
            (1) Valid contracts based on free, fair, and arms length 
        transactions should be respected, but contracts based on 
        dishonest and fraudulent activities diminish trust in market 
        transactions, hinder economic growth and do not warrant 
        protection equal to that of fair and valid contracts.
            (2) The Enron Corporation and or agents of the Enron 
        Corporation willfully engaged in manipulation of the 
        electricity market in the Western Interconnect for many months 
        during the years 2000 and 2001, creating the West Coast Energy 
        Crisis. During the West Coast Energy Crisis, the Federal Energy 
        Regulatory Commission failed to act in a timely manner in 
        enforcing the Federal Power Act to ensure Just and Reasonable 
        rates during the West Coast Energy Crisis.
            (3) During the West Coast Energy Crisis, the President of 
        the United States, the Vice President of the United States, the 
        Secretary of the Energy, and the Federal Energy Regulatory 
        Commission repeatedly stated that the Federal Government would 
        not take action to control the fraudulent prices of 
        electricity, leaving many utilities no choice but to enter into 
        fraudulent contracts with Enron.

SEC. 2. FRAUDULENT AND MANIPULATIVE MARKET ACTIVITIES BY ENRON.

    (a) Revocation of Market Rate Authority.--The Federal Energy 
Regulatory Commission shall issue an order revoking the authority 
granted to the Enron company (and any affiliate of the Enron company, 
the bankruptcy trustee for the company and any successor in interest to 
the Enron company or any affiliate thereof) to sell electric energy at 
market-based rates. Such revocation shall be effective retroactive to 
the date on which the commission determines that the Enron company 
initially engaged in the manipulation of prices for electric energy 
sales or engaged in any fraudulent activity with regard to such sales.
    (b) Claims for Damages by Enron Prohibited.--In the case of any 
contract for the sale of electric energy or natural gas by the Enron 
company of any affiliate of the company which has been terminated by 
Enron or by the purchaser or under which the purchaser has ceased to 
accept delivery of electric energy or natural gas, the Federal Energy 
Regulatory Commission shall issue an order prohibiting the Enron 
company (and any affiliate of the Enron company, the bankruptcy trustee 
for the company and any successor in interest to the Enron company or 
any affiliate thereof) from enforcing any claim for monetary damages 
(including any penalty for contract termination) or from otherwise 
enforcing contract provisions against the purchaser.
                                 <all>
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