Enron

Rick Perry appointed Enron executive Max Yzaguirre to the position of Texas Public Utilities Chairman. The day after the appointment Perry received a $25,000 contribution from the Ken Lay the CEO of Enron. This gave Enron a key position in the deregulation of Texas energy that was passed in July 2002 (right on the heals of Yzaguirre’s entry to his post). Yzaguirre did not fully disclose that he was a former Enron Vice President to the public until November 15. With the timely $25,000 contribution to Perry it seems he would be well informed of Yzaguirre’s previous position with Enron. According to Texas law it is illegal to appoint anyone to this office if they had served as an executive at any energy company in the past two years - therefor this appointment was breach of law.

Texas Utilities Code - Section 12.053. Membership Qualifications: A person is not eligible for appointment as a commissioner if the person: (1) at any time during the two years preceding appointment: (A) personally served as an officer, director, owner, employee, partner, or legal representative of a public utility, affiliate, or direct competitor of a public utility; or (B) owned or controlled, directly or indirectly, stocks or bonds of any class with a value of $10,000 or more in a public utility, affiliate, or direct competitor of a public utility;

In his 2002 gubernatorial race Perry received $200 thousand dollars from Enron. Not long after Perry received the money Enron collapsed. After five months of calls for him to return the money he returned $85 thousand stating the rest had already been spent.