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CS 365 - Programming Languages
Spring Semester 2005, Section 31252

Notes Regarding Enron

1985 - Two companies, Houston Natural Gas (HNG) and InterNorth merged to form Enron. At the time HNG's CEO was Kenneth Lay, who took over as the CEO of Enron. (Lay would later be chairman of the Board.) Originally, the business was pipelines and power plants, but under the direction of Lay it expanded to more of a  commodities trading type of business -- "making deals," so to speak.

1999 - Started EnronOnline, allowed Enron traders to execute trades in real time.

2000 - California Energy Crisis --- caused in part by Enron.

2001 - The year of the Enron's rapid decline.

May 2001 - Federal Investigations of Enron over the California Crisis

August 2001 - CEO Jeff Skilling resigns., Sherron Watkins note to Ken Lay about bad accounting practices.

October 2001 - Enron forced to declare losses that they had hid from investors. Stock prices plummets. Financial structure based on stock price starts to crumble.

November 2001 - A merger with Dynegy fails to happen.

December 2001 - Enron files for bankruptcy.

People and Terms (that you might see)

Ken Lay - Founder, CEO and later chairman of the board

Jeff Skilling - The #2 guy, later became the CEO. He sanctioned some of the accounting and trading schemes to hide the company's actual performance.

Andy Fastow - Chief Financial Officer who created kind of fake companies known as  SPEs (Special Purpose Entities) such as LJM1, LJM2 and Chewco to hide Enron problems. (The business plan was that the stock would always go up.) Another series of such deals were known as the Raptor deal.

Greg Whalley - Head of the Enron traders, replaced Skilling when he left.

John Lavorato - A Whalley lieutenant

Louise Kitchen - Came up with the EnronOnline system.

Jeff McMahon - Enron treasurer at the end

Jeff Dasovich - Enron Gov. Affairs

Steve Kean - Enron executive vice president and chief of staff

Richard Sanders - Head of Litigation for Enron North America.

Vince Kaminski - An Enron probability guru

Chuck Watson - Dynegy CEO

Arthur Andersen --- Enron's auditing firm. They were indicted for illegal accounting practices.

David Duncan - Enron auditor and laison with Andersen.

DPC (Dabhol Power Company), Maharastra, MSEB (Mahara. State Energy Board) -- these are terms that refer to the power plant that Enron tried to build in India.

Gray Davis - Governor of California (before Schwarznegger).

FERC - Federal Energy Regulatory Commission.

CPUC - California Public Utilities Commission