Dyers Watching Enron Outcome
The apparel industry’s big energy users are hoping for some sort of relief to emerge from the latest chapter in the Enron Corp. saga after a recent federal investigation uncovered some of the first inside proof that Enron may have intentionally manipulated electricity prices during California’s energy crisis last year.
An investigation by the Federal Energy Regulatory Commission (FERC) of Houston-based Enron released several internal memos from company attorneys explaining how Enron officials could maximize revenue through manipulation of transmission schedules and thus force surcharges for the company’s California customers.
Several local dyers that contracted with Enron for natural gas went out of business. The survivors were left with exorbitant, long-term contracts.
Though the latest issue involves electricity contracts, the local industry will be monitoring the situation, said Scott Edwards, president of the Association of Textile Dyers, Printers & Finishers.
“We’ll be watching it closely to see if it will provide dyers with an outlet from their contracts,” he said.
Meanwhile, Cal-Independent System Operator, which runs the electricity markets in California, has asked FERC to extend market protections and price caps for the state beyond the current Sept. 30 expiration date. —Robert McAllister
