Hit Davi$ Every Chance Ya Can!!!
DUMP DAVI$ & the Den of Socialists
GO SIMON
Posted on 06/24/2002 12:52:09 PM PDT by Ernest_at_the_Beach
Edited on 04/13/2004 3:29:30 AM PDT by Jim Robinson. [history]
LOS ANGELES (AP) - A November 2000 e-mail about Enron-style energy trading tactics is likely to trigger a legislative probe into whether the Los Angeles Department of Water and Power engaged in such activities.
On another front, state senators will put off a Monday vote to confirm S. David Freeman as head of the state public power authority until lawmakers learn more about his role at the DWP during the electricity crisis.
(Excerpt) Read more at bayarea.com ...
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Having said that, I hope Freeman is rejected for the post. I've read some of his papers, and this guy is a communist utopian.
Ditto's from the PNW!
Maybe, maybe not!
Seriously, if you can do a richochet trade by yourself with no cooperation from any one else, it is probably legal. If on the other hand, you need another party to perform the trade and you "conspire with the other party" in a way that restrains trade (especially interstate commerce) you have violated bunches of anti-trust laws.
The Richchet trades really involved another party. The serious question has to do with the motives of the two parties involved in the transactions and the degree of information they shared back and forth.
If Enron sold power to say Avista and then bought back the power, and Avista had no knowledge that the trade was being performed to jack the price up to the Cal ISO, then Avista did nothing wrong. Enron may likely have violated rules, but not Avista.
Sometimes in power trading someone will sell you something and then say Opppps can I buy what I just sold you back. For example, I can have more power than I need and sell the surplus, but a power plant breaks down or my load suddenly increases above forecast and I need that power back real quick. There is nothing wrong with trying to buy power back, depending on your motives. I would not expect an Avista or others to demand to know why Enron changed its mind on a trade. FERC or the Cal ISO maybe, but not Avista.
You got to remember that we are talking about anti-trust laws and various FERC mandated arm's length types of relationships. More seriously is the federal intervention by the Options Trading folks on the California power prices and markets. That could really toss some folks in jail.
That would make him the perfect choice for California. He would fit right in.
I don't see anything which obviously iolates antitrust laws to sell power to a purchaser out of state who you know is going to sell back into the state. If anything was restraining trade, it was the ridiculously low price cap for power produced and sold within the state. That was unprofitable, given the fuel costs the producer was paying at the time.
Another liar in government. No wonder Freeman and Davis are such good friends.
No kidding. It's a little difficult if you have a natural gas fired plant and you're buying the gas at $15-$25 per mcf, to then try and make a profit when forced to sell the electricity for less than the cost of production.
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