Reid demands resignations of FERC commissioners

- Sen. Harry Reid recently called for the resignation of two members of the Federal Energy Regulatory Commission, charging that they have failed to protect Nevada consumers from the misdeeds of Enron Corp.

The two commissioners -- Chairman Patrick Wood and Commissioner Nora Mead Brownell -- were recommended to President Bush by former Enron Chief Executive Ken Lay, who was indicted this month for his part in the Enron scandal.

"FERC was established to protect ratepayers, and the commission has failed miserably to do so," Reid said in a statement. "There appears to be a clear conflict of interest when two of the commissioners owe their job to the chairman and CEO of Enron. I think they should resign."

Reid did not mention the commissioners in his statement, but his office later identified Wood and Brownell as the FERC members in question.

A FERC spokesman declined to comment on Reid's statement.

Nevada Power Co. and its sister utility, Sierra Pacific Power of Reno, owe Enron more than $330 million in termination payments awarded in a July 2003 U.S. Bankruptcy Court decision. Months earlier FERC had ruled that, despite findings of market manipulation on the part of Enron and others during the 2000-01 Western energy crisis, the long-term contracts were valid.

The Nevada companies have since been trying to get FERC to review its decision on various grounds with no answer from the federal regulators.

Nevada Power spokesman Jack Leone declined to comment on Reid's statement.