Enron Ascending

Part VIRestless Enron: 1994–1996

 

Introduction

Ken Lay was impatient. His new goal was to double Enron’s size and earnings in five years, a mere waystation on Enron’s march to become the world’s leading energy company. Wholly new profit centers had to be created, building upon the Enron described in Part V: exploration and production; gas transmission; gas liquids; gas marketing; international infrastructure development; and operations management.

The future Enron was taking shape. The rechristened Enron Capital & Trade Resources (ECT, formerly Enron Gas Services) was marketing electricity and raising outside capital to invest in different energy areas.¹ And three new businesses were in process that would become new Enron divisions in 1997.

An entry into solar power in 1995 (via half-owned Solarex) was followed by a major wind power purchase (Zond Energy Systems) to form Enron Renewable Energy Corp. The smallest of the three new businesses, EREC, a political bet, was foremost in issuing press releases. Enron also redefined itself as a new energy major by launching Enron Energy Services, as well as acquiring the Oregon public utility Portland General Electric.

Enron was going beyond its original natural gas mission, even its core competency. “Clean” and “green” energies were offered to the stationary market (renewables to generate electricity) and for transportation (MTBE to reformulate gasoline).² Ventures completely outside the field of energy—broadband (begun in 1997) and ...