Enron’s Pullout Shows Consumers Have the Real Power

Shame on Enron, which decided to pull out of the California electricity market after trying it for a colossal period of 22 days [“Home Utility Customers Cool to Switching,” April 23].

The company expected to gain hundreds of thousands of customers in the early stages of a $5-million advertising campaign. But it persuaded only 30,000. Therefore the Texas-based company decided that the California market is not good enough.

California has succeeded in creating an efficient marketplace with consumer protections. The intent of the state’s restructuring law was to create an efficient marketplace for the benefit of all California’s electricity customers and to protect consumers. California utility customers are receiving competitively priced power through the newly created Power Exchange, in addition to a 10% cut in their monthly energy bills.

How arrogant. Why would an unknown company expect to beat in less than a month domestic utilities which have been here for more than 100 years? This shows consumers understand the value of long-term commitment. What Enron invested during a three-month publicity campaign in California is not even a fraction of what the traditional utility companies invest in the community year after year.

MARCY KLEIN

Beverly Hills

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Well, they finally admitted it. Enron’s recent announcement that it was pulling out of the residential electricity market in California (barely after deregulation had begun) was a classic sore loser’s whine, thinly covering the company’s severe miscalculation of the state’s electricity business.

As a Californian and an individual investor looking at the opportunity presented by electricity deregulation in my home state, I’m greatly disappointed by Enron’s lack of commitment.

I’m not alone. Wall Street has grown tired of Enron’s Texas-sized swagger and medium-sized results. Quit bellyaching, Enron. Just show us the money.

ANTHONY FELLOW

El Monte

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Texas-based Enron’s statement that it will no longer market to residential consumers is a testament to California’s electricity deregulation plan.

Electricity deregulation was not supposed to be about profit margins for power marketers. It was supposed to be about creating a competitive market for electricity consumers--large and small. If the mechanism to offer competitively priced electricity to smaller customers fails to meet the profit motives of power marketers such as Enron, then I think we did something right.

The crux of the matter is, Enron doesn’t want to bother with the little guy. Their business interests are more likely served by selling to larger customers, with whom they’ve stated they will continue to do business.

JIM CONRAN

President

Consumers First

Orinda, Calif.

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Let me get this straight. Enron says it can’t compete because of the 10% discount residential customers now receive on their monthly utility bills, yet Enron touts energy contracts for millions of dollars with some of the state’s large business and industrial customers.

Hey, Enron, sounds like you decided to give your discounts to big business and share peanuts with residential customers. I think my 10% looks pretty good right now. Don’t let the door hit you in the saddle on the way out of town.

TETSUO IWASAKI

Lakewood