California Attorney General Bill Lockyer has filed a lawsuit against Enron and several subsidiaries.
Lockyer alleges Enron manipulated market prices during California´s energy crisis in 2000 and 2001.
Two former Enron traders have pleaded guilty to wire fraud charges, and a third is awaiting trial in October.
Lockyer says there is compelling evidence that Enron took almost two billion dollars in illegal profits from California.
The attorney general is accusing Enron of causing congestion along power lines and collecting money for fixing the bogus congestion.
Lockyer also says the company misrepresented out-of-market energy sales so it could sell power back to the state at a higher price.
Enron is accused of violating state laws regulating unfair competetion and commodities.
The company may pay up to 25-hundred dollars for breaking the unfair competition law, and up to 25-thousand dollars for every violation of the state commodities law.