Bush Backer Reaps Profits in Calif. Crisis

W A S H I N G T O N, Jan. 26 -- One of the biggest beneficiaries of the California power crisis is a Texas energy conglomerate that more than any other single company has helped bankroll President Bush's political career.

Enron Corp. of Houston is among a handful of a new generation of independent electric power brokers and producers that have reaped giant revenue increases from California's power shortages and higher natural gas prices nationwide.

The new president's rejection of price controls to hold down soaring electricity costs in the Golden State reflects the views of Enron, the largest wholesaler of electricity and largest owner of natural gas pipelines in North America.

The company and its employees have given more than anyone else to Bush's two campaigns for Texas governor, his unsuccessful House campaign in 1978 and last year's race for the White House, according to the watchdog Center for Public Integrity.

Enron and its employees gave $113,800 to Bush's presidential campaign, making it his 10th most generous contributor; $250,000 to the Republican National Convention host committee; and $300,000 to the Presidential Inauguration Committee.

Enron Chief Executive Officer Kenneth Lay, who raised more than $100,000 for Bush's campaign, is a member of the president's energy transition team and attended his economic summit.

"I clearly think Ken Lay and the Enron Corp. has President Bush's ear on energy matters," said Craig McDonald, director of Texans for Public Justice, an advocacy group critical of Bush. "They had his ear when he was governor. It's no surprise that Bush's policies mirror those of Enron."

Energy Industry Political Contributions Up 46 Percent

Enron spokesman Eric Thode said Bush campaigned as "a proponent of states' rights and deregulation. He doesn't need anybody to suggest that to him."

White House spokeswoman Claire Buchan also denied that Enron influenced Bush's decision Tuesday to continue for only another two weeks Clinton administration orders to the company and other power providers to continue shipping electricity to California's near bankrupt utilities.