Enrons Power In Washington: Campaign Contributions, Web of Political Ties

March 2002 IBEW Journal

Enrons extensive political ties to the Bush Administration and the companys huge campaign contributions, both to President Bush and to many in Congress, have raised serious questions about the companys political access and influence on government policy.

Since the early 1990s, Enron has showered both Democrats and Republicans on Capitol Hill with big contributions. "In 2000, Mr. Lay and Enron made $2.4 million in political donations, of which 75 percent went to Republicans," The Wall Street Journal reported. The Center for Responsive Politics estimates that Republicans received approximately 73 percent of total donations contributed by Enron, its executives and employees over the past 12 years. Enron alone gave $5.8 million to federal political candidates since 1989.

Enron Corp. and CEO Ken Lay, a longtime personal friend of President Bush (who nicknamed him "Kenny Boy"), were top donors to the presidents various campaigns. "By the time Mr. Bush was inaugurated in January 2001, Enron and a number of its executives, including Mr. Lay, had contributed more money to Mr. Bush over his political career than anyone else, an amount exceeding $550,000. Enron then wrote a check for $100,000 for Mr. Bushs inaugural committee," The New York Times reported.

Wendy Gramm, wife of U.S. Senator Phil Gramm (R-Texas), sits on Enrons board of directors. Both Gramms made a career of fierce advocacy for deregulation, and Senator Gramm is a top recipient of Enron political contributions. Senator Gramm had already announced prior to the Enron debacle that he would not run for re-election in 2002.

Vice President Dick Cheney, as head of the administrations Energy Policy Task Force, and his aides met with Enron at least six times to discuss energy policy. The task forces final recommendation on electricity deregulation reportedly resembled much of what Enron sought in meetings with the Vice President.

Also at the recommendation of Enrons Lay, President Bush appointed Patrick H. Wood III to chair the Federal Energy Regulatory Commission (FERC), the agency that oversees many of the markets Enron sought to enter. CEO Lay stirred controversy last year when he personally interviewed the former head of FERC, who has now left government.

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