2000–2001 California electricity crisis

Short description: Electricity crisis in California in 2000–2001

Chronology[1][2][3]

1996 | California begins to modify controls on its energy market and takes measures ostensibly to increase competition.
September 23, 1996 | Pete Wilson signs Electric Utility Industry Restructuring Act (Assembly Bill 1890) and it becomes law.[4]
April 1998 | Spot market for energy begins operation.
May 2000 | Significant rise in energy prices.
June 14, 2000 | Blackouts affect 97,000 customers in San Francisco Bay area during a heat wave.
August 2000 | San Diego Gas & Electric Company files a complaint alleging manipulation of the markets.
January 17–18, 2001 | Blackouts affect several hundred thousand customers.
January 17, 2001 | Governor Davis declares a state of emergency.
March 19–20, 2001 | Blackouts affect 1.5 million customers.[5][6]
April 2001 | Pacific Gas & Electric Co. files for bankruptcy.[7][8]
May 7–8, 2001 | Blackouts affect upwards of 167,000 customers.[9]
September 2001 | Energy prices normalize.
December 2001 | Following the bankruptcy of Enron, it is alleged that energy prices were manipulated by Enron.
February 2002 | Federal Energy Regulatory Commission begins investigation of Enron's involvement.
Winter 2002 | The Enron Tapes scandal begins to surface.
November 13, 2003 | Governor Davis ends the state of emergency.

The 2000–2001 California electricity crisis, also known as the Western U.S. energy crisis of 2000 and 2001, was a period during which the state of California experienced an electricity shortage caused by market manipulation and capped retail electricity prices.[10] The state suffered multiple large-scale blackouts, one of its largest energy companies collapsed, and the economic fall-out greatly harmed the standing of Governor Gray Davis.

Drought and delays in the approval of new power plants also decreased supply.[10]: 109 [11] This caused an 800% increase in wholesale electricity prices from April 2000 to December 2000.[12]: 1 In addition, rolling blackouts adversely affected many businesses dependent on a reliable supply of electricity and inconvenienced many retail consumers.

California had an installed generating capacity of 45 GW (gigawatts, or billions of watts). At the time of the blackouts, demand was 28 GW. A supply-demand gap was created by energy companies, mainly Enron, to create artificial shortages. Energy traders took power plants offline for maintenance during days of peak demand to increase prices.[13][11] Traders were thus able to sell power at premium prices, sometimes at up to twenty times its normal value. Because the state government capped retail electricity charges, this market manipulation squeezed the industry's revenue margins, causing the bankruptcy of Pacific Gas and Electric Company (PG&E) and the near bankruptcy of Southern California Edison in early 2001.[12]: 2–3

According to the Federal Energy Regulatory Commission (FERC), the situation became possible because of legislation enacted in 1996 by the California Legislature (AB 1890) and Governor Pete Wilson that deregulated some aspects of the energy industry. Enron took advantage of this partial deregulation and engaged in economic withholding and inflated price bidding in California's spot markets.[14]

The damage caused by the crisis was estimated to be between $40 and $45 billion.[12]: 3–4

## Contents

* 1 Causes
* 1.1 Market manipulation
* 1.2 Effects of partial deregulation
* 1.3 Government price caps
* 1.4 New regulations
* 1.5 Supply and demand
* 2 Key events
* 3 Consequences of wholesale price rises on the retail market
* 4 Involvement of Enron
* 5 Handling of the crisis
* 5.1 Governor Gray Davis
* 5.2 Arnold Schwarzenegger
* 5.3 Congressional response to the crisis
* 5.4 Federal Energy Regulatory Commission
* 6 See also
* 7 References
* 8 External links

## Causes

### Market manipulation

As the FERC report concluded, market manipulation was only possible because of the complex market design produced by partial deregulation. Manipulation strategies were known to energy traders by names such as "Fat Boy", "Death Star", "Forney Perpetual Loop", "Wheel Out", "Ricochet", "Ping Pong", "Black Widow", "Big Foot", "Red Congo", "Cong Catcher", and "Get Shorty".[15]

In a letter sent by David Fabian to Senator Boxer in 2002, it was alleged that:

"There is a single connection between northern and southern California's power grids. I heard that Enron traders purposely overbooked that line, then caused others to need it. Next, by California's free-market rules, Enron was allowed to price-gouge at will."[16]

### Effects of partial deregulation

At the federal level, the Energy Policy Act of 1992, for which Enron had lobbied, opened electrical transmission grids to competition by unbundling generation and transmission of electricity.[17]

At the state level, part of California's deregulation process, which was promoted as a means of increasing competition, was also influenced by lobbying from Enron and began in 1996, when California became the first state to deregulate its electricity market.[18][19]

PG&E yard in San Francisco

Energy deregulation put the three companies that distributed electricity into a difficult situation. The energy deregulation policy froze or capped the price of energy that the three energy distributors could charge for electricity.[20] Deregulating energy producers did not lower energy costs. Deregulation did not encourage new producers to generate more electricity and drive down prices. Instead, as demand for electricity increased, energy producers charged higher prices for electricity.[21] The producers used spikes in energy production to inflate energy prices.[21] In January 2001, energy producers began shutting down plants in order to increase prices.[21]

### Government price caps

Retail electricity price caps limited the ability of utilities to pass rising wholesale costs on to consumers. In February 2001, California Governor Gray Davis stated, "Believe me, if I wanted to raise rates I could have solved this problem in 20 minutes."[22] However, in San Diego, where San Diego Gas & Electric had paid off its debt, market rates began to be charged in July 1999. Prices doubled in two months because of a hot summer, and people protested by refusing to pay their bills and calling the power company.[23]

When electricity demand in California rose, utilities had no financial incentive to expand production because long-term prices were capped. Instead, wholesalers such as Enron manipulated the market to force utility companies into daily spot markets for short-term gain. For example, in a market technique known as megawatt laundering, wholesalers bought electricity in California at below cap price to sell out of state, creating shortages. In some instances, wholesalers scheduled power transmission to create congestion and drive up prices.[24]

After extensive investigation, the Federal Energy Regulatory Commission (FERC) substantially agreed in 2003:[14]

"supply-demand imbalance, flawed market design and inconsistent rules made possible significant market manipulation as delineated in final investigation report. Without underlying market dysfunction, attempts to manipulate the market would not be successful."

"many trading strategies employed by Enron and other companies violated the anti-gaming provisions".

"Electricity prices in California's spot markets were affected by economic withholding and inflated price bidding, in violation of tariff anti-gaming provisions."

### New regulations

In the mid-1990s, under Republican Governor Pete Wilson, California began restructuring its electricity industry. Democratic State Senator Steve Peace was the chairman of the Senate Committee on Energy at the time and is often credited as "the father of deregulation".[25] The author of the bill was Senator Jim Brulte, a Republican from Rancho Cucamonga.[26] Wilson publicly admitted that defects in the deregulation system would need to be fixed by "the next governor".

PG&E electric meter on Angel Island

### Supply and demand

California's population increased by 13% during the 1990s.[27] The state did not build any new major power plants during that time, and California's generation capacity decreased by 2 percent from 1990 through 1999, while retail sales increased by 11 percent.[28]

California's utilities came to depend in part on imports of excess hydroelectric power from the Pacific Northwest states of Oregon and Washington.[29] During that time, California relied on out-of-state generators to supply 7 to 11 gigawatts of power.[30]

In the summer of 2001, a drought in the Northwest states reduced the amount of hydroelectric power available to California.[31] Moreover, wholesale natural gas prices spiked nationwide, rising from around $2 per one million British thermal units (290 kilowatt-hours) at the beginning of 1999 to more than $10 per million BTU in the winter of 2000-2001.[32]

The main line that allowed electricity to travel from the north to the south, Path 15, had not been improved for many years and became a major bottleneck that limited the amount of power that could be sent south to 3,900 MW.

The International Energy Agency estimates[33] that a 5% reduction in demand would have resulted in a 50% price reduction during the peak hours of the 2000-2001 crisis. With better demand response, the market also becomes more resilient to the intentional withdrawal of offers from the supply side.

## Key events

Rolling blackouts affecting 97,000 customers hit the San Francisco Bay Area on June 14, 2000, and San Diego Gas & Electric Company filed a complaint in August 2000 alleging market manipulation by some energy producers. On December 7, 2000, because of low supply and idled power plants, the California Independent System Operator (ISO), which manages the California power grid, declared the first statewide Stage 3 power alert, meaning power reserves were below 3 percent. Rolling blackouts were avoided when the state halted two large state and federal water pumps to conserve electricity.[34]

Most notably, the city of Los Angeles was unaffected by the crisis because government-owned public utilities in California (including the Los Angeles Department of Water & Power) were exempt from the deregulation legislation and sold their excess power to private utilities in the state, mostly to Southern California Edison, during the crisis. That enabled much of the greater Los Angeles area to suffer only rolling brownouts rather than long-term blackouts experienced in other parts of the state.[35]

## Consequences of wholesale price rises on the retail market

As a result of the actions of electricity wholesalers, Southern California Edison (SCE) and Pacific Gas & Electric (PG&E) were buying electricity on the spot market at very high prices but were unable to raise retail rates. For a product that the IOUs used to produce for about three cents per kilowatt-hour of electricity, they were paying eleven to fifty cents, or occasionally even more, but they were capped at 6.7 cents per kilowatt-hour when charging their retail customers. As a result, PG&E filed for bankruptcy, and Southern California Edison devised a workout plan with the State of California to save the company from the same fate.[36] According to a 2007 study of Department of Energy data by Power in the Public Interest, retail electricity prices rose much more from 1999 to 2007 in states that adopted deregulation than in those that did not.[37]

## Involvement of Enron

Main article: Company:Enron

One of the energy wholesalers that became notorious for "gaming the market" and reaping large speculative profits was Enron Corporation. Enron CEO Kenneth Lay mocked the efforts of the California state government to thwart the practices of the energy wholesalers, insisting that "no matter what the 'crazy people in California' did, he had people working for him at Enron that could figure out a way to make money." The original statement was made during a phone conversation between S. David Freeman (chairman of the California Power Authority) and Lay in 2000, according to statements made by Freeman to the Senate Subcommittee on Consumer Affairs, Foreign Commerce and Tourism in April[38] and May 2002.[39]

Freeman, who was appointed chair of the California Power Authority in the midst of the crisis, made the following statements about Enron's involvement in testimony[39] submitted to the Subcommittee on Consumer Affairs, Foreign Commerce and Tourism of the Senate Committee on Commerce, Science and Transportation on May 15, 2002:

"There is one fundamental lesson we must learn from this experience: electricity is really different from everything else. It cannot be stored, it cannot be seen, and we cannot do without it, which makes opportunities to take advantage of a deregulated market endless. It is a public good that must be protected from private abuse. If Murphy's Law were written for a market approach to electricity, then the law would state 'any system that can be gamed, will be gamed, and at the worst possible time.' And a market approach for electricity is inherently gameable. Never again can we allow private interests to create artificial or even real shortages and to be in control.

"Enron stood for secrecy and a lack of responsibility. In electric power, we must have openness and companies that are responsible for keeping the lights on. We need to go back to companies that own power plants with clear responsibilities for selling real power under long-term contracts. There is no place for companies like Enron that own the equivalent of an electronic telephone book and game the system to extract an unnecessary middleman’s profits. Companies with power plants can compete for contracts to provide the bulk of our power at reasonable prices that reflect costs. People say that Governor Davis has been vindicated by the Enron confession."

## Handling of the crisis

### Governor Gray Davis

Some critics, such as Arianna Huffington, alleged that Davis was lulled into inaction by campaign contributions from energy producers.[40] In addition, the California State Legislature would sometimes push Davis to act decisively by taking over power plants that were known to have been manipulated and placing them back under the control of the utilities, ensuring a steadier supply and punishing the worst manipulators. Meanwhile, conservatives argued that Davis signed overpriced energy contracts, employed incompetent negotiators, and refused to allow residential electricity prices to rise statewide as they did in San Diego, which they argued could have given Davis more leverage against the energy traders and encouraged greater conservation.[41] Additional criticism is presented in the book Conspiracy of Fools, which details a meeting involving the governor and his officials, Clinton Administration Treasury officials, and energy executives, including market manipulators such as Enron, during which Davis disagreed with the Treasury officials and energy executives. They advised suspending environmental studies to build power plants and implementing a small rate hike to prepare for long-term power contracts (which Davis eventually signed overpriced ones, as noted above), while Davis supported price caps, denounced the other solutions as too politically risky, and allegedly acted rudely.[42] The contracts Davis signed locked Californians into high electricity costs for the next decade.[43] As of October 2011, electric rates in California had yet to return to pre-contract levels.

### Arnold Schwarzenegger

On May 17, 2001, future Republican governor Arnold Schwarzenegger and former Los Angeles mayor Richard Riordan, a Republican, met with Enron CEO Kenneth Lay at the Peninsula Beverly Hills Hotel in Beverly Hills. The meeting was convened for Enron to present its "Comprehensive Solution for California," which called for an end to federal and state investigations into Enron's role in the California energy crisis.[44][45]

On October 7, 2003, Schwarzenegger was elected governor of California to replace Davis. Over a year later, he attended the commissioning ceremony[46] for a new Western Area Power Administration (WAPA) 500 kV line that remedied the power bottleneck on Path 15.

### Congressional response to the crisis

In the spring of 2001, House Government Affairs Energy Policy and Regulatory Affairs Subcommittee chairman Doug Ose held a series of field hearings in California and Nevada, receiving testimony from Public Utilities Commission chair Loretta Lynch, FERC General Counsel Kevin Madden, California ISO President and CEO Terry Winter, and Central Valley farmers. During the hearings, the state and federal representatives blamed each other, but there was consensus that warning signs of the crisis had been repeatedly missed.[47]

### Federal Energy Regulatory Commission

The Federal Energy Regulatory Commission (FERC) was closely involved in the handling of the crisis beginning in the summer of 2000. There were at least four separate FERC investigations.[48]

* The Gaming Case, which investigated general allegations of manipulation of the Western energy markets.
* The Enron Western Markets Investigation, FERC Docket Number PA02-2, which specifically investigating the involvement of Enron and other companies in manipulating the energy markets.[48]
* The Refund Case, which involved the wide-ranging recovery of illegal profits made by some companies during the crisis.
* The Economic Withholding and Anomalous Bidding Case.[49]

In December 2005, the Commission filed a report with Congress on its response to the California electricity crisis,[50] which stated that "to date, the Commission staff has facilitated settlements resulting in over $6.3 billion".

On August 17, 2013, the British Columbia company Powerex agreed to a $750 million refund to settle charges of manipulating electricity prices during 2000.[51]

## See also

Note: This topic belongs to "California" portal

*   * List of power outages
* Morgan Stanley Capital Group, Inc. v. Public Utility District No. 1, a United States Supreme Court case caused by this disaster.

## References

1. ↑ "Federal Energy Regulatory Commission Chronology". https://elibrary.ferc.gov/idmws/common/opennat.asp?fileID=10492781.
2. ↑ "ERisk.com's The California Energy Crisis 2063-20100". http://www.erisk.com/Learning/CaseStudies/ref_case_californiacrisis.asp.
3. ↑ "FrontLine's California Crisis Timeline". https://www.pbs.org/wgbh/pages/frontline/shows/blackout/california/timeline.html.
4. ↑ "California Electric Energy Crisis - Provisions of AB 1890". U.S. Energy Information Administration (EIA). https://www.eia.gov/electricity/policies/legislation/california/assemblybill.html.
5. ↑ "California Orders Blackouts For a Second Straight Day". The New York Times. March 21, 2001. https://www.nytimes.com/2001/03/21/us/california-orders-blackouts-for-a-second-straight-day.html.
6. ↑ "Second Day of Blackouts Disrupts 500000 Homes and Businesses". Los Angeles Times. March 21, 2001. https://www.latimes.com/archives/la-xpm-2001-mar-21-mn-40618-story.html.
7. ↑ "California's Largest Utility Files for Bankruptcy". The New York Times. April 7, 2001. https://www.nytimes.com/2001/04/07/us/california-s-largest-utility-files-for-bankruptcy.html.
8. ↑ "PG&E; Declares Bankruptcy; State's Crisis Plans Collapse". Los Angeles Times. April 7, 2001. https://www.latimes.com/archives/la-xpm-2001-apr-07-mn-48927-story.html.
9. ↑ "Rolling blackouts ordered across state". San Diego Union-Tribune. May 8, 2001. https://www.sandiegouniontribune.com/2001/05/08/rolling-blackouts-ordered-across-state/.
10. ↑ 10.0 10.1 Sweeney, James L. (Summer 2002). "The California Electricity Crisis: Lessons for the Future". National Academy of Engineering of the Nation Academies. http://www.nae.edu/Publications/Bridge/OurEnergyFuture/TheCaliforniaElectricityCrisisLessonsfortheFuture.aspx. ""... volatile commodity market, but it had fixed sales prices for the investor-owned utilities at the retail level, a potentially untenable combination""
11. ↑ 11.0 11.1 Egan, Timothy (February 4, 2005). "Tapes Show Enron Arranged Plant Shutdown". The New York Times. https://www.nytimes.com/2005/02/04/national/04energy.html?ex=1107666000&en=01449ebf62df572e&ei=5070.
12. ↑ 12.0 12.1 12.2 Weare, Christopher (2003). The California Electricity Crisis: Causes and Policy Options. San Francisco: Public Policy Institute of California. ISBN 1-58213-064-7. http://www.ppic.org/content/pubs/report/R_103CWR.pdf.
13. ↑ Tapes: Enron plotted to shut down power plant.
14. ↑ 14.0 14.1 "FERC Summary of findings". http://www.ferc.gov/industries/electric/indus-act/wec/enron/summary-findings.pdf.
15. ↑ Congestion Manipulation "DeathStar", McCullough Research (June 5, 2002)
16. ↑ Letter from David Fabian to Senator Boxer, February 13, 2002, p.1, quoted in Congestion Manipulation "DeathStar", McCullough Research (June 5, 2002) at p.4.
17. ↑ "A most favored corporation: Enron prevailed in federal, state lobbying efforts 49 times". Center for Public Integrity. January 6, 2003. https://www.publicintegrity.org/2003/01/06/3160/most-favored-corporation-enron-prevailed-federal-state-lobbying-efforts-49-times.
18. ↑ Fogarty, Thomas A.; Iwata, Edward (May 15, 2002). "Energy deregulation: Is it friend or enemy?". USAToday. http://usatoday30.usatoday.com/money/covers/2002-05-16-enron-california-hearings.htm.
19. ↑ "Editorial: Don't let ghosts of Enron haunt us again" (in en). Sacramento Bee. September 24, 2016. https://www.sacbee.com/opinion/op-ed/article103535032.html.
20. ↑ "Energy Crisis Overview: How we got here". The San Francisco Chronicle. May 8, 2001. http://www.sfgate.com/cgi-bin/article.cgi?file=/gate/archive/2001/05/08/lookhow.DTL.
21. ↑ 21.0 21.1 21.2 Carolyn Said (December 24, 2001). "The Energy Crunch / A Year Later / State's deregulation folly is no laughing matter / Consumers face inflated bills for years for failed electricity plan". The San Francisco Chronicle. https://www.sfgate.com/news/article/THE-ENERGY-CRUNCH-A-YEAR-LATER-State-s-2834535.php.
22. ↑ Energy crisis cited as turning point for Davis , San Diego Union-Tribune, September 2, 2003
23. ↑ Lazarus, David (2000-07-27). "Deregulation Doubling Electric Bills / San Diego jolt a preview of what Northern California may face". San Francisco Chronicle. https://www.sfgate.com/news/article/Deregulation-Doubling-Electric-Bills-San-Diego-3303208.php.
24. ↑ Leopold, Jason. "Enron linked to California blackouts" (in EN-US). https://www.marketwatch.com/story/enron-caused-california-blackouts-traders-say.
25. ↑ Martin, Mark (December 22, 2002). "Newsmaker Profile: Steve Peace / Davis' finance chief skilled at raising hell / Brash ex-senator a bold pick". San Francisco Chronicle. http://www.sfgate.com/politics/article/NEWSMAKER-PROFILE-Steve-Peace-Davis-finance-2709769.php.
26. ↑ How California's Consumers Lost With Electricity Deregulation Common Dreams
27. ↑ Perry, Marc; Mackun, Paul. "Population Change and Distribution: Census 2000 Brief". https://www.census.gov/prod/2001pubs/c2kbr01-2.pdf.
28. ↑ "Subsequent Events-California's Energy Crisis". https://www.eia.gov/electricity/policies/legislation/california/subsequentevents.html#N_7_.
29. ↑ "Subsequent Events-California's Energy Crisis". https://www.eia.gov/electricity/policies/legislation/california/subsequentevents.html#N_7_.
30. ↑ "Subsequent Events-California's Energy Crisis". https://www.eia.gov/electricity/policies/legislation/california/subsequentevents.html#N_7_.
31. ↑ "Subsequent Events-California's Energy Crisis". https://www.eia.gov/electricity/policies/legislation/california/subsequentevents.html#N_7_.
32. ↑ "Natural Gas: Analysis of Changes in Market Price". U.S. General Accounting Office. https://www.gao.gov/assets/gao-03-46.pdf.
33. ↑ The Power to Choose – Enhancing Demand Response in Liberalised Electricity Markets Findings of IEA Demand Response Project, Presentation 2003
34. ↑ Quinton, Amy. "California's Water Supply, A 700 Mile Journey". http://www.capradio.org/articles/2013/10/07/californias-water-supply-a-700-mile-journey/.
35. ↑ Seema Mehta; Nancy Vogel (June 29, 2002). "Hahn Orders DWP to Probe Power Deals". Los Angeles Times. https://www.latimes.com/archives/la-xpm-2002-jun-29-me-dwp29-story.html.
36. ↑ Keeley, Fred (March 8, 2001). "The Energy Crisis: Keeping The Lights On". http://www.commonwealthclub.org/archive/01/01-03keeley-speech.html.
37. ↑ Johnston, David (November 6, 2007). "Competitively Priced Electricity Costs More, Studies Show". The New York Times. https://www.nytimes.com/2007/11/06/business/06electric.html.
38. ↑ "Testimony of S. David Freeman". April 11, 2002. http://commerce.senate.gov/hearings/041102freeman.pdf.
39. ↑ 39.0 39.1 "Testimony of S. David Freeman". May 15, 2002. http://commerce.senate.gov/hearings/051502freeman.pdf.
40. ↑ Huffington, Arianna (January 27, 2001). "Gov. Davis and the failure of power: California's energy crisis is another lesson in the need for campaign finance reform". https://www.salon.com/2001/01/27/power_4/.
41. ↑ "Ten good reasons to recall Gray Davis". Human Events. August 18, 2003. http://www.findarticles.com/p/articles/mi_qa3827/is_200308/ai_n9286114.
42. ↑ Eichenwald, Kurt (2005). "15". Conspiracy of Fools (1st ed.). New York: Broadway Books. pp. 408–12. ISBN 0-7679-1178-4. https://archive.org/details/conspiracyoffool00eich.
43. ↑ "Governor Davis and the Energy Crisis". http://www.geoffmetcalf.com/davis_20010525.html.
44. ↑ [1]
45. ↑ "Schwarzenegger Accused of Involvement in $9B California Swindle with Enron's Ken Lay". Democracynow.org. http://www.democracynow.org/2003/10/6/schwarzenegger_accused_of_involvement_in_9b.
46. ↑ Hinkley, Carolyn (January 14, 2005). "Western Area Power Administration". Closed Circuit newsletter. http://www.wapa.gov/newsroom/cct/2005/jan14/27no12.htm.
47. ↑ Thompson, Don. "House launches probe" (in en-US). https://www.recordnet.com/story/news/2001/04/11/house-launches-probe/50786172007/.
48. ↑ 48.0 48.1 ﻿Summary of FERC documentation relating to the Western Energy Crisis 2000–2001﻿ (Report). http://www.ferc.gov/industries/electric/indus-act/wec.asp. Retrieved August 17, 2008.
49. ↑ Investigation of Anomalous Bidding Behavior and Practices in the Western Markets, 103 FERC ¶ 61,347 at 62,360 (2003).
50. ↑ ﻿The Commission's Response to the California Electricity Crisis and Timeline for Distribution of Refunds﻿ (Report). https://www.ferc.gov/sites/default/files/2020-05/comm-response.pdf.
51. ↑ "Canadian province settles California energy crisis case". Reuters. August 16, 2013. http://in.reuters.com/article/utilities-california-crisis-idINL2N0GH0WI20130816.

## External links

* Federal Energy Regulatory Commission (FERC) Final Report on Price Manipulation in Western Markets (March 23, 2003)
* Findings at a glance
* Chronology in detail
* Further documents, including detailed report
* Reports on Enron and the California Energy Crisis by McCullough Research – page includes many downloadable reports, some of which were presented as evidence during investigations into the causes of the crisis.
* Susan L. Pope, "California Electricity Price Spikes: An Update on the Facts" (December 9, 2002) (Opposes the McCullough research and supports the view that the crisis was an outcome of genuine problems with supply and demand)
* Enron Traders Caught On Tape – Gloating about manipulating California's energy market. (CBS Evening News)
* Enron Tapes Hint Chiefs Knew About Power Ploys – (Los Angeles Times)
* Papers Show That Enron Manipulated Calif. Crisis – (The Washington Post)
* "Defying Corporations, Defining Democracy": As Internal Memos Reveal That Enron Drove Up Power Prices in California – A talk to Author Richard Grossman (Democracy Now!)
* Schwarzenegger Accused of Involvement in $9B California Swindle with Enron’s Ken Lay – (Democracy Now!)
* "The Trouble with Electricity Markets: Understanding California's Restructuring Disaster". http://econ.ucsc.edu/faculty/lkletzer/borenstein_jepw02.pdf.
* "California Department of Water Resources 50th Anniversary Article on the 2001 Energy Crisis". http://www.publicaffairs.water.ca.gov/dwr50thanniversary/cers.cfm.

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