In Pennsylvania, then Texas governor George W. Bush even called then Pennsylvania governor Tom Ridge to encourage him to support deregulation of electricity in Pennsylvania. George W. Bush strongly supported and signed an electric deregulation law in Texas at the behest of Ken Lay and Enron. Enron was successful in pushing through electric power deregulation in 24 state legislatures, which made it possible for them to create the "markets" they needed to rip off consumers. Some experts say that Enron played a significant role in the recent astronomical increases in electric rates in California and other states. According to the National Institute of Money in State Politics, Enron's lobbying included more than $1.9 Million in campaign contributions to more than 700 candidates in 28 states. They met with utilities commissioners and worked in close tandem with other energy companies to make sure that electric power privatization passed in legislatures across the country.

The massive political and lobbying power of these energy companies drowned out the voices of consumer groups and environmental groups who had serious questions and doubts about electric restructuring. These corporate victories set the stage for an "energy crisis" in California and other states. Many have argued that the old system of regulated monopolies is wasteful and environmentally indefensible. This was certainly true. But what Lay proposed, privatization of the generation of electricity and deregulation, was not only as bad as the old regulated monopoly system but also far worse. What state legislatures created was a system with little control and few regulations. This unregulated system ultimately created the conditions where corruption, greed, and deception flourished. Just look at what recently happened to California's electric rates and service during their recent "energy crisis" when deregulation of the electric industry was implemented.California experienced the 4 B's: Brownouts, Blackouts, Bailouts, and Bankruptcies.

This story was repeated in many other states in the U.S., which are at various stages of creating a "market" out of their electric power system. Connecticut will face the piper of electric deregulation when the electric rate price controls come off our electric bills in 2004. What Lay got for his money were politicians who were willing to do the dirty work of corporations like Enron. These elected officials came from both the Democratic and Republican party. They represent and are owned by big money and big corporate interests. But the de-regulation mania of the 1980's and 1990's did not only deal with energy policy but extended into almost every corner of our economy and government regulation.

What makes the Enron story so serious is that it may be the tip of the iceberg as far as corporate corruption is concerned. People are now anxious about their 401k accounts and their ability to protect their retirement money in the future. About 45% of the wage earners in the U.S. now own substantial amounts of stock. Because of deregulation and other schemes many of the protections once afforded to stockholders have been quietly repealed or eliminated and other protections never made it out of congressional committees.

Continued | Back to top