Editorial: Pain and heartache

Friday, June 25, 2004 | 4:37 a.m.

WEEKEND EDITION

June 26 - 27, 2004

It's now known that the Western energy crisis of three years ago was caused in large part by Enron Corp., whose manipulation of the electricity markets caused power shortages. As an energy trader, Enron profited fantastically from the ensuing higher prices for energy.

Among those forced to pay the higher prices was Nevada Power Co., which reluctantly entered long-term contracts with Enron. After Enron was exposed and after it filed for bankruptcy -- the largest in U.S. history -- the corporation came after Nevada Power, demanding $330 million in satisfaction of those contracts.

Of course, Nevada Power argued that it was forced into signing them, but the bankruptcy judge nevertheless ruled that the contracts were valid. Now the utility is appealing that decision to the Federal Energy Regulatory Commission -- and has some fresh ammunition. CBS Evening News last week aired audiotapes of Enron traders gloating over Nevada Power's predicament. "I want to see what pain and heartache this is going to cause Nevada Power Co.," one Enron trader says. "I want to (expletive) with Nevada Power for awhile."

We agree with Nevada's congressional delegation and Nevada Power officials: This tape is a smoking gun. It shows conscious intent to defraud Nevada Power and the ratepayers of Southern Nevada. The FERC should should cause a little pain and heartache for Enron by voiding its contracts with Nevada Power.