The Sarbanes-Oxley Act of 2002

Over the course of the 1990s, Enron made a few changes to its business plan that
greatly improved the perceived profitability of the company. First, Enron invested heavily
in overseas assets, specifically energy. Another major shift was the gradual transition of
focus from a producer of energy to a company that acted more like an investment firm
and sometimes a hedge fund, making profits off the margins of the products it traded.
These products were traded through the Gas Bank concept, now called the Enron
Finance Corp. headed by Skilling.
Operations As a Trading Firm
With the success of the Gas Bank trading natural gas, Skilling looked to expand the
horizons of his division, Enron Capital & Trade. Skilling hired Andrew Fastow in 1990 to
help with this.
Entrance Into The Retail Energy Market
Starting in 1994 under the Energy Policy Act of 1992, Congress allowed states to
deregulate their electricity utilities, allowing them to be opened for competition.
California was one such state to do so. Enron, seeing an opportunity with rising prices,
was eager to jump into the market. In 1997, Enron acquired Portland General Electric
(PGE). Although an Oregon utility, it had potential to begin serving the massive
California market since PGE was a regulated utility. The new Enron division, Enron
Energy, ramped up its efforts by offering discounts to potential customers in California
for switching their electric supplier to Enron from their previous supplier, starting in
1998. Enron Energy also began to sell natural gas to customers in Ohio and wind power
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