Which Way, L.A.?

State Launches Investigation into High Gas Prices

State legislators suspect that oil companies are doing to California this spring what the power companies did four years ago, gaming the system by creating shortages in order to drive prices sky high. Democratic State Senator Joe Dunn of Santa Ana says he thinks he can prove it. The statewide average price of self-serve regular has jumped 4.6 cents in the last week, to a record $2.27 a gallon. One gas station in the Bay Area has a sign saying $3.33--plus one arm-plus one leg. Warren Olney speaks with Dunn, a spokeswoman for the petroleum industry, and the head of a group that claims to watch out for consumers. Reporter's Notebook: Tapes Provide Insight into Enron-s Duplicity Enron employees have been caught on tape, bragging about taking millions from "Grandma Millie," in a 450-page transcript filed against Enron. What did Enron-s Kenneth Lay and Jeffrey Skilling know, and when did they know it? Energy consultant Robert McCullough, who investigated the West Coast power failures in 2000, is advising the Snohomish County Public Utility District in its legal battle with Enron.