Price-gouging inquiries target Enron: Overcharges in California may exceed $40b

OS ANGELES - The practices of Enron Corp. and other energy companies that designed California's energy-deregulation bill resulted in $40 billion to $70 billion in utility overcharges and ancillary costs, said a consumer group and the agency that operates the state's energy grid.
These figures are sharply higher than the $8.9 billion refund that the state has demanded from Enron and other energy firms. They have been calculated as four state entities - the state attorney general's office, the Public Utilities Commission, the Electricity Oversight Board, and a state senate committee - investigate price-gouging allegations.
''We've been ringing the warning bell for quite some time,'' said Greg Cook, manager of market monitoring for the California Independent System Operator, which runs the state's energy grid.