I 
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 Com-
mittee 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 Representa-
tives 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 activi-
ties 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 manipu-
lation of the electricity market in the Western Inter-
connect for many months during the years 2000 and 
2001, creating the West Coast Energy Crisis. Dur-
ing the West Coast Energy Crisis, the Federal En-
ergy Regulatory Commission failed to act in a timely 
manner in enforcing the Federal Power Act to en-
sure 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 repeat-
edly stated that the Federal Government would not 
take action to control the fraudulent prices of elec-
tricity, leaving many utilities no choice but to enter 
into fraudulent contracts with Enron. 
SEC. 2. FRAUDULENT AND MANIPULATIVE MARKET ACTIVI-
TIES BY ENRON. 
(a) REVOCATION OF MARKET RATE AUTHORITY.—
The Federal Energy Regulatory Commission shall issue 
an order revoking the authority granted to the Enron com-
pany (and any affiliate of the Enron company, the bank-
ruptcy trustee for the company and any successor in inter-
est 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 com-
mission determines that the Enron company initially en-
gaged 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 PROHIB-
ITED.—In the case of any contract for the sale of electric 
energy or natural gas by the Enron company of any affil-
iate 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 com-
pany or any affiliate thereof) from enforcing any claim for 
monetary damages (including any penalty for contract ter-
mination) or from otherwise enforcing contract provisions 
against the purchaser.
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