— The WSJ (link requires subscription) reports:
WASHINGTON — Using strategies dubbed “Death Star,” “Get Shorty,” and “Fat Boy,” Enron Corp.’s energy traders manipulated California’s power system to increase profits during the height of the state’s 2000-2001 energy crisis, documents released by federal regulators show.
The internal company documents were the first to provide evidence of what had been suspected through previous inquiries by the Federal Energy Regulatory Commission — that market manipulation was a major factor in sending wholesale energy prices soaring in six Western states.
Turns out the market was gamed after all, folks. The tactics included shipping power outside the state and then back in to escape price caps, and charging the state for moving power and relieving congestion when they hadn’t moved any power or relieved any congestion. And with all of that, Enron still went out of business, but not until a few bucks went into a few numbered bank accounts, I’ll betcha.