California system was easy pickings : Enron helped build market, then exploited weaknesses

The San Francisco Chronicle ^ | Sunday, February 3, 2002 | Mark Martin, Chronicle Sacramento Bureau

[Ernest_at_the_Beach]

Sacramento -- Long before Enron Corp.'s plunge from riches to rags, the Houston energy maverick's aggressive campaign to push government regulators out of the electricity industry found its best business opportunity in California.

No company preached free-market electricity with the same fervor. No company purported to know more about how to open energy markets to competition.

[Ernest_at_the_Beach]

This reads like it is straight out of Gov Graypout Davis's Office!!!

[Ernest_at_the_Beach]

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[Ernest_at_the_Beach]

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[ken21]

i like the way lay's son got to ucla, graduated with a b.s. in econ + made his way up the corporate ladders to a v.p., crashed, + now is blaming bad people for his choices.

like some medieval kings he's now taking refuge in a church! he's becoming a baptist minister!

my head hurts.

[snopercod]

Yup, when I saw it was from the SF Comics, I knew it was going to be another "evil capitalists against the poor working people" hit piece. But hey, most Californians seem to keep falling for this socialist propaganda, don't they?

"Enron's fingerprints are all over all of the dysfunctional parts of the market". That's pretty funny, coming from the author of AB 1890.

[OldFriend]

Here is a simple fact of life. You cannot allow a product to be purchased at market prices but sold at a regulated price. The problem all belongs to CA governor.

[Ernest_at_the_Beach]

But hey, most Californians seem to keep falling for this socialist propaganda, don't they?

Well, their are a few of us fighting the overwhelming ignorance of the masses out here!

[Ernest_at_the_Beach]

my head hurts.

LOL!!!

[tubebender]

This reads like it is straight out of Gov Graypout Davis's Office!!!

TURN is out for one thing and one thing only, and that is public control of the energy market from generation to the end user. It might be cheaper to some consumers but it will be subsidzed by others. Pure Socialism.

BTW, have you seen the cover of Time Mag. The one with Enrons problems and a photo of the White House on the cover?

[blake6900]

"Enron's fingerprints are all over all of the dysfunctional parts of the market," said John Rozsa, an aide to state Sen. Steve Peace, D-El Cajon, who was the chairman of a legislative committee on deregulation.

In typical Chronicle fashion, we only get part of the story...there is no mention that Steve Peace was one of the architects of the pathetic deregulation system we have in California. No, instead he is depicted as simply a committee chairman.

Obviously, Peace is not interested in taking blame for the mess he helped create so he blames a convenient scapegoat, Enron, for being the root of all the power crisis evil. And, as usual, the San Franciso Chronicle shows up with bells on to carry the water of yet another liberal...

Take this story for what it's worth...and don't forget Gray Davis is running for reelection. It's surprising the Los Angeles Times didn't beat the Chron to the punch...

[kezekiel]

It's surprising the Los Angeles Times didn't beat the Chron to the punch...

We'll have to presume from that that Davis's staff sent their talking points to the Chronicle first. BTW, I love Hugh Hewitt's moniker for the paper: The San Francisco Chronically Wrong-icle.

[okie01]

"This reads like it is straight out of Gov Graypout Davis's Office!!!"

Doesn't it? But read the examples...

-- Power managers running the auction would stack energy bids from the least expensive to the costliest, then select enough bids to cover the state's energy needs. But the managers were forced to pay everyone the same price -- the highest cost selected. Companies aware of shortages knew they could bid in at high prices and make big profits.

-- Companies were not penalized for failing to deliver the power they offered in the auction. If prices were higher on the spot market, marketers could withdraw energy from the auction and sell it on the spot market.

-- Companies could play on the transmission limits of the state. Companies could purposely overschedule power deliveries and end up getting paid to not deliver.

An admission that the state legislature painted a sign on California's back that said "Kick Me!"

And, now, Steve Peace (of all people) is complaining that they got a boot up their butt...

There's little doubt about the agenda (or, alternatively, the ignorance) of the reporter, is there? He cites all the problems...and attributes them to Enron rather than governmental idiocy.

Moreover, here is another key sentence...

"Because most market data are confidential, it's unclear which companies may have benefited the most from the state's crisis last year, and whether there was any illegal activity."

As I recall, Davis' office released a list of the so-called "price gougers" -- about a dozen of them (this is the one which included BC Hydro and LA WPD). And Enron was next-to-last on the list -- with only about 5% of the MW involved and the second lowest cost/MW.

That thread should still be around here. Maybe, we should find it and forward it to Mr. Martin -- since the governor's office obviously "forgot" to provide the data to him.

[Ernest_at_the_Beach]

Have not seen that!

[Robert357]

The SF Chronical has outdone itself for yellow journalism. If I read this carefully, I am amazed that Ernon was able to single handedly pull the wool over the eyes of so many in government. I thought we had checks and balances in government! But no according to this article Enron with all the skill of the Tri-lateral commission or the Masonic order was able to build relationships and secretly control the destiny of California, with no politicians having either the will or the passion to defend the needs of the common citizens. (/sarcasm)

Seriously, if even a tenth of what the SF Chronicle says were true, shouldn't the democratic party in the state of California be ashamed that its members refused to defend the interest of the citizens at so many different legislative, and executive branch agency opportunities.

[lewislynn]

That's pretty funny, coming from the author of AB 1890.

He's not the author. "AB" stands for assembly bill, Peace was a Senator. Then Assembly Speaker (R) Jim Brulte is/was the author under the direction of then (R) Governor Pete Wilson and his PUC.

AB 1890 Assembly Bill - CHAPTERED

BILL NUMBER: AB 1890	CHAPTERED
	BILL TEXT

	CHAPTER   854
	FILED WITH SECRETARY OF STATE   SEPTEMBER 24, 1996
	APPROVED BY GOVERNOR   SEPTEMBER 23, 1996
	PASSED THE SENATE   AUGUST 31, 1996
	PASSED THE ASSEMBLY   AUGUST 30, 1996
	CONFERENCE REPORT NO.   1
	PROPOSED IN CONFERENCE   AUGUST 28, 1996
	AMENDED IN SENATE   JUNE 19, 1996
	AMENDED IN SENATE   APRIL 8, 1996
	AMENDED IN ASSEMBLY   JULY 19, 1995
	AMENDED IN ASSEMBLY   JULY 11, 1995
	AMENDED IN ASSEMBLY   JUNE 19, 1995
	AMENDED IN ASSEMBLY   APRIL 25, 1995

INTRODUCED BY  Assembly Member Brulte
   (Principal coauthors:  Assembly Members Conroy, Kuykendall, and
Martinez)
   (Principal coauthors:  Senators Leonard, Peace, and Sher)
   (Coauthors:  Assembly Members Ackerman, Alby, Baca, Battin, Baugh,
Boland, Frusetta, Goldsmith, Harvey, Margett, McPherson, Miller,
Morrissey, Morrow, Pringle, Richter, Alpert, Baldwin, Brown,
Bustamante, Cunneen, Davis, Ducheny, Escutia, Gallegos, Hawkins,
Hauser, House, Kaloogian, Katz, Knowles, Machado, Mazzoni, Kevin
Murray, Willard Murray, Napolitano, Olberg, Poochigian, Rainey,
Rogan, Takasugi, and Woods)
   (Coauthors:  Senators Alquist, Calderon, Haynes, Johannessen,
Kelley, Maddy, Ayala, Dills, Costa, Craven, Hughes, Johnston, Kopp,
Killea, Leslie, Marks, Petris, Polanco, Rosenthal, Russell, Solis,
and Monteith)

                        FEBRUARY 24, 1995

   An act to amend Sections 955.1 and 3440.1 of the Civil Code, to
amend Section 9104 of the Commercial Code, to amend Sections 63010,
63025.1, and 63071 of, and to add Article 6 (commencing with Section
63048) to Chapter 2 of Division 1 of Title 6.7 of, the Government
Code, to amend Section 216 of, to add Chapter 2.3 (commencing with
Section 330) to, to add Article 5.5 (commencing with Section 840) to
Chapter 4 of, Part 1 of Division 1 of, to add Division 4.9
(commencing with Section 9600) to, and to repeal Article 12
(commencing with Section 394) of Chapter 2.3 of Part 1 of Division 1
of, the Public Utilities Code, relating to public utilities, making
an appropriation therefor, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1890, Brulte.  Public utilities:  electrical restructuring..........