Ken Lay, Enron, and the Federal Energy Regulatory Commission (FERC)

January 11, 2002

UPDATE | UPDATE 2

Remember last Summer's California energy crisis? Well...Ken Lay put some pressure on FERC Chairman Curtis Hebert to play ball, or Enron would not back him for his job.

http://www.senate.gov/~feinstein/releases01/ferc_investigation.html

"And now, we have a report in today's New York Times that Enron's Chairman Mr. Kenneth Lay told Curtis Hebert Jr., the chairman of the Federal Energy Regulatory Commission, that Enron would support him in his job if he backed a national push for retail competition in the energy business and a faster pace in opening up access to the electricity transmission grid to companies like Enron."

http://www.whitehouse.gov/news/briefings/20010531.html#Enron

Coincidentally, or not, Hebert wound up RESIGNING from his Chairmanship a few months later, after he snubbed Lay's attempt at extortion.

http://www.consumerwatchdog.org/utilities/st/st001839.php3

"California is not losing a friend of the consumer with the announced resignation of Federal Energy Regulatory Commission Chairman Curtis Hebert. Nonetheless, Hebert's resignation is troubling because it reveals the workings of the invisible hand of Kenneth Lay, head of the Enron Corporation. In Washington, people don't just give up their powerful positions. People resign because somebody above them tells them to resign. Back in June, it was reported in the New York Times that Lay was putting the heat on Hebert to pursue a more federally-oriented deregulation stance (Enron-style -- see above) in return for Lay's endorsement; the energy executive, after all, has enjoyed legendary influence with the President, who appoints Commission members and names the Chairperson. But Hebert snubbed Lay, who views the pro-dereg outgoing commissioner as not pro-dereg enough. Lay has been a long-time supporter of fellow Texan Pat Wood, who is expected to take over Hebert's post."

--Hesiod

UPDATE

Here's an article about the resignation of FERC Chairman, Curtis Hebert.

http://www.nctimes.com/news/2001/20010807/55008.html

This was only a couple of month after Ken Lay called him up and threatened his job if he didn't play ball. AND after Ari Fleischer said Hebert's job was not in jeopardy.

Was Hebert a Clinton appointed Democratic holdover on the Commission? Nope...

"Hebert, who grew up in the same town of Pascagoula, Miss., as Senate Republican leader Trent Lott and considers him a mentor, was named FERC chairman by Bush in January. At the time, Hebert was the only Republican on the five-member commission because of two vacancies."

He was a Trent Lott crony, appointed by Bush, who had only been serving as FERC Chairman for 8 months!!!

Where there's smoke [and this is smokey] there's fire.

--Hesiod

UPDATE 2

"Didn't get to know Ken Lay until I ran for Governor" my behind.

Bush helpd Enron secure a interest in an Argentinian natural gas pipeline when former Argentina President, Carlos Menem, came into power. Bush had been lobbying his predecessor since 1988!

http://www.motherjones.com/mother_jones/MA00/argentina.html

Here's Enron's website explaining how they gained interest in the pipeline in 1992.

http://www.ei.enron.com/presence/latin_america.html

Bush's claim that he had no contact with Ken Lay prior to his gubernatorial run in 1994 is bogus. This has already been demonstrated elsewhere, but here's more evidence.

--Hesiod