Dear Mr. Stanley and Ms. Snider,

This letter is in reference to the electricity contract awarded to Reliant Energy (contract award SP0600-04-D-8007 and solicitation number SP0600-03-R-0149), and makes a similar request to that of correspondence sent to you last week by U.S. Senator Dianne Feinstein.

In between the time of the solicitation on October 2, 2003 and the contract award on May 18, 2004, the U.S. Department of Justice obtained a criminal indictment (on April 8, 2004) against Reliant Energy Services for the company’s role in manipulating the West Coast electricity market. Public Citizen believes that Reliant’s indictment for activities related to the terms of the awarded contract are grounds for a debarment/suspension proceeding under 48 CFR 9.400.

As part of the solicitation, Reliant Energy was required to answer the following question: “The offeror certifies, to the best of its knowledge and belief, that the offeror and/or any of its principals are or are not presently indicted for, or otherwise criminally or civilly charged by a government entity with, commission of any…offenses.”

While Reliant Energy truthfully answered are not to the above question when initially responding prior to the November 12, 2003 closing date of the solicitation, it is not clear whether or not the company amended its bid to reflect the April 8, 2004 U.S. Department of Justice criminal indictment against the company.

Public Citizen asks three questions to which we respectfully request answers:

1. Did any individual or entity involved with soliciting or awarding the contract have any knowledge of the criminal indictment of Reliant Energy Services prior to awarding the contract?
2. Did Reliant Energy or any of its agents initiate communication to any government officials involved in reviewing and approving of the contract regarding the company’s April 2004 criminal indictment or formally amending the company’s bid to reflect the indictment?
3. Has any debarment/suspension proceeding been initiated against Reliant Energy, and if not, why not?

I look forward to your response to our inquiry.

Sincerely,

Wenonah Hauter, Director
Public Citizen’s Energy Program

Cc:

Joseph E. Schmitz
DoD Inspector General
400 Army Navy Drive, Room 1000
Arlington VA 22202
fax 703.604.8310