California --- Setting Up An Energy Company For Scorn?

[Todd]

OK, see if you can follow this.

Do you remember the height of California’s power crisis? Democratic Governor Grey Davis was clamoring for federally imposed price controls – and using one particular power company, Reliant Energy, as an example of price-gouging energy companies badly in need of a federal smackdown.

Here are the words of Grey Davis: “We have been obscenely gouged by out of state energy companies. Just the other day we had to pay $1900 for a megawatt hour which a year ago would have cost $30.”

They paid $1900 a megawatt hour for electricity? From who? Reliant Energy, that’s who! And just why was Reliant Energy charging so much for that power? Well, because this was a Reliant power plant that lacked certain pollution controls. Under California law this plant was only allowed to operate nine days a year. Just nine days. All of that upkeep, maintenance, insurance, personnel costs and it’s open just nine days a year. That, my friends, makes for some expensive power … and that’s just what the Grey Davis and his crowd were looking for. They WANTED to buy some hideously expensive power ---- just read on.

Now we have some additional information making its way into the controversy. Reliant officials are now charging that the State of California set them up. California intentionally bought expensive energy from Reliant when cheaper power – much cheaper power was available for purchase elsewhere.

Fox News conducted an investigation and found that while California was buying energy from one Reliant plant at $1900 per hour, there was other power available for about $400 per megawatt hour. That’s about one-fifth the cost!

The power companies are charging that California intentionally paid big bucks to buy power from one particular Reliant power plant at for a huge price, when they could have purchased that same power much cheaper, in order to create the basis for a charge of price gouging.

After the purchase was made Grey Davis made the most of it --- repeatedly citing the $1900 figure as his prime example of price gouging. At one press event even used the “M” word! “The villains are clearly the energy companies that are bleeding us dry and figuratively committing murder …. ahhh …. figuratively getting away with murder by charging such outlandish rates.”

So --- just who was it that gouged the California consumers? Looks like it might have been Grey Davis, not Reliant! But, hey --- it’s all for the good of Democrat politics, so no real harm done.

 

[Unclebill]

I'm still trying to figure out whether

Gray Davis is so incredibly stupid or very slick and astute politically.

FYI, Todd, the $1,900/MWh was the result of the cost to run the plant more than the nine days per year because of the fines the plant would incur for pollution violations. Gray Davis could have waived those regulations to get cheaper power on line but refused to do so. Thus, it seems to me he was using this debacle to try and set up Bush via accusations about Texas companies gouging California and it provided him the means to piss away the entire $9 BILLION excess taxation (state surplus) to feed his present desire to raise taxes on Californians once more.

Also, remember his bitching and whining about plants shutting down to manipulate supplies and drive pricces up? A couple of weeks ago, Mr. Gray Davis had this fantastic coup of a few ex-employees of a company who would testify to precisely that.

What a day he was having (or so he thought smugly). Funny part is, when the showdown came, Davis ended up with egg on his face as usual. It seems the order to shut down the plants came from, guess who, the ISO. Who's that you ask? The Independent System Operator, a government agency under Davis direction which controls the energy grid for the state! How do you spell. "OOOOPS! Did I fuck up again?"

[RANT]This incompetent asshole in his ongoing efforts to solve the energy crisis which he has done more to exacerbate it than anything else, anticipating the summer's energy requirements, purchased contracts at prices up to $136/MWh.

Now that the summer has turned out to be milder than predicted (global warming, anyone), this stupid motherfucker is now selling the contracted energy off for whatever he can get, some of it for $1/MWh.

Can someone give me a clue where this moronic asshole took economics? University of Havana under Professor Castro, perhaps?

So those of you who live in California, try to remember this when this asshole is up for reelection next year. And remember the Democrats in Sacramento who gave this fucking moron the authority to do all this on his own.[/RANT]

 

[Andra_Jenny]

Well, lets look at his problem solving approach.

1). Problem defined.
2). Point the finger.
3). Hire party hacks to help point the finger.
4). Call Laurel to get her finger out.
5). Call for more federal money.
6). Begin your re-election campaign.
7). Hire party hacks to help point the finger.
8). Call Laurel to get her finger out.
9). Call for more more federal money.
10). TBA - Will run for president to solve crises.

 

[Andra_Jenny]

How could this table have turned?

Uncle Bill making me look like the calm rational one

 

[Closet Desire]

I have no problem...

...with a group of people or even an entire state deciding they are going to be "green" and place the interests of their environment above other interests like energy. I have a big problem when this same group complains about reaping what they have sown. To make it worse they want to villianize others who had more foresight than they.

If every state was having problems with high energy costs then I might buy into this "conspiracy" theory, but they aren't. California as a state created this problem by not guaranteeing, either though conservation or increased energy capacity, their own future.

No sympathy here.

 

[Unclebill]

Re: How could this table have turned?

Originally posted by Andra_Jenny
Uncle Bill making me look like the calm rational one

A tip of the hat and my sincerest thanks for the compliment.

There is probably nothing that pisses me off worse then stupidity, incompetence, dishonesty and like behaviors being rewarded. I have watched these Democrat assholes in California screw up the economy with their idiotic, moronic non-deregulation of the electrical industry.

[RANT]And now the moronic asshole in the governor's office wants to raise taxes having pissed away via his incompetence $9 BILLION dollars in about a year's time and mortgaged the future of Californians for about another $40 BILLION in long term electricity contracts he purchased while the market was at its highest! And now that the stupid bastard has found that he has what amounts to an excess, he's selling it for pennies on the dollar while I pick up the tab along with the rest of the CA residents. And this asshole gets on radio and TV to tell everyone how HE's solving the problem. And to add insult to injury, this stupid asshole wants to RAISE taxes!

This is a man who has absolutely no understanding of economics and doesn't give a damn about anything beyond his own political future. That's why Davis hired two of Clinton's former public relations liars (he calls them consultants) to salvage his public image AND PUT THEM ON THE STATE PAYROLL AT $30,000.00 PER MONTH! It's Davis and assholes like him who have shaped my view of career politicians.[/RANT]

They have put innocent people out of business. Susan Davis was elected to Congress after her part in the deregulation debacle put out of business a company that had done business for about 20-30 years. But I guess it was really no big deal. After all, it was only a small family business and probably couldn't afford to contribute to her campaign fund anyway. How many other such victims she left in her wake, who knows?

The reason? Electricity prices tripled even with the price caps the government put in place in the deregulated market.

[RANT]Yet the incompetent bastards, having demonstrated that it gets worse the more they do, want people to elect them again to continue their campaign of destruction.

And what frightenes me is, I watched the people of this state elect Jerry Brown TWICE! Talk about a condemnation of one's intellect! Voting for him once could be dismissed as misled by false advertising. But twice? How could anyone be that gullible? or stupid? But they were![/RANT]

And now Davis wants to be reelected. The prospect is frightening knowing the voting history of this state.

 

[miles]

Gray Davis

I don't know when the next election is, but I'll bet he gets re-elected. These weasels are the ultimate spinmeisters and are following the lead of I Won't Say His Name. Distort the truth, blame big business, and promote class envy.

...and the next person who says "what about the Republicans" can go fuck a rolling doughnut.