Prepared Direct Testimony of Robert McCullough on Behalf of the ...

Please identify yourself and give your place <strong>of</strong> business.My name is <strong>Robert</strong> <strong>McCullough</strong>. I am the Managing Partner <strong>of</strong> <strong>McCullough</strong> Research,an energy consulting firm specializing in bulk power issues. My address is 6123 S.E.Reed College Place, Portland, Oregon 97202.Can you briefly summarize your qualifications.Yes. I have been working on the California market failure for the past two and half years years.During that time I have worked with utilities, industries, regulators, and the Oregon, Washington,and California Attorneys General to understand the causes <strong>of</strong> the California market failure. Ourfirm's work on Enron's collapse and the possibility <strong>of</strong> Enron's price leadership in California hasresulted in testimony before the Senate Energy and Natural Resources Committee in January,, the House Commerce and Energy Committee in February, 2002 and the SenateCommittee on Commerce, Science and Transportation, and the California State SenateCommittee to Investigate Price Manipulation <strong>of</strong> the Wholesale Energy Market. Myretrospective analysis <strong>of</strong> the California market failure appeared in the April issue <strong>of</strong> PublicUtilities Fortnightly, the industry's leading periodical, following my January 1, 2001 analysis in thesame journal.My detailed qualifications are contained in Exhibit SEATAC-401 to this testimony.Have you been active in investigating the California Market Failure and its broaderimplications?The combination <strong>of</strong> secrecy, complexity, manipulation, and politics makes work on