Return To Sanity? [IBD Editorial on CalPERS]

Investor's Business Daily ^ | December 3, 2004 | IBD staff

[snopercod]

State Finance: California's massive public employee retirement fund, dubbed Calpers, sacked its top executive this week. To that we say: It's about time.

If you don't know about Calpers, or think it's of interest only to California, shame on you. Calpers is the largest public investment fund on earth, and wields enormous clout in stock markets around the world — including our own.

So when the State Personnel Board voted 3-to-2 to fire controversial head Sean Harrigan, it made waves. Some blamed "big business" for the firing, others a secret deal between Gov. Arnold Schwarzenegger and his big-money backers in the GOP.

But it was something else entirely. Harrigan, a long-time union chief and Democratic activist, had pushed Calpers in questionable directions. They included a new emphasis on using $180 billion in assets to pursue goals that were less financial than social.

[snopercod]

How's Calpine stock doing these days?

[snopercod]

Nice timing, huh.

[Ernest_at_the_Beach]

I saw this just a few days ago in the LA Times:

Calpine, GE Plan Power Plant

Doesn't say where....

[Ernest_at_the_Beach]

Calpine shares rose 24 cents to $3.88. GE shares climbed 6 cents to $35.36. Both trade on the New York Stock Exchange.

Calpine has an option to buy the plant from GE after an "extended period," the companies said. GE will pay the construction costs, which Ray estimated at more than $500 million.

[Ernest_at_the_Beach]

BTTT!

[snopercod]

Wasn't Calpine selling for about $50 back when CalPERS bought a ton of it during the Gray Davis days? Oh my, yes it was.

[NormsRevenge]

10 more plants on the way in the construction process.. Now if we can get some dang LNG plants approved and built to feed 'em cheaper fuel..


Calpine Quick Facts

http://www.calpine.com/media/index.asp

Founded in 1984

Headquartered in San Jose, Calif.

Publicly traded (NYSE: CPN) since 1996

Listed on the S&P 500

Has 92 facilities in operation with a total capacity of more than 26,000 megawatts

Has over 10 more facilities under construction that will provide more than 5,800 additional megawatts of capacity

Uses clean, proven technologies: natural gas combined-cycle and geothermal energy

Calpine is Northern California's leading geothermal power producer. At The Geysers in northern California, Calpine harnesses naturally heated steam from the earth to create renewable "green" electric power.

Calpine has a safety record much better than the industry average

According to a survey reported in 2002 in the New York Times, Calpine ranked as the second-lowest emissions producer of the 100 largest U.S. power companies. (The leader was later sold, moving Calpine to No. 1.)

[Ernest_at_the_Beach]

There was an LNG plant approved down by Ensenado with Sempra involved.

Mexican Government approved it, will bring in LNG from Indonesia....

Thought I posted something on that.

[Ernest_at_the_Beach]

Zowie....over $50 to $3.88.... didn't some of Davis's cronies get some special stock?

[snopercod]

Davis advisers' Calpine links hit, Governor, generator deny special deal

Then there was Vikram Budhraja, Davis's "energy advisor", who was being investigated by the SEC for the insider trading of Edison, Williams, and Calpine Stock in 2001. I wonder whatever happened to that?

External link to SacBee: SEC seeks data from Davis aides

[Ernest_at_the_Beach]

The memories have grown fuzzy.