FERC can't be trusted, [California] official says

Contra Costa Times ^ | September 20, 2002 | Rick Jurgens

[snopercod]

FOLSOM The man appointed by Gov. Gray Davis to act as traffic cop on California's electricity grid attacked federal regulators Thursday and demanded authority to fine rules breakers in the state's power markets.

The Federal Energy Regulatory Commission can't be trusted to protect consumers, and should clear the way for state officials to act against power sellers, said Michael Kahn, board chairman of the California Independent System Operator. "It's not an acceptable alternative to ask FERC if we're being screwed," he said at a board meeting as some power sellers fidgeted in the audience, precluded by board rules from speaking.

[snopercod]

The Wrath of Kahn?

[snopercod]

I crack myself up...

[Ernest_at_the_Beach]

That is a good one. Humor of any sort is needed when watching the mis-deeds of the Davis crowd!

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[Dog Gone]

Good one. :-)

The battle lines have been drawn. FERC vs Cal ISO.

I have no doubt who will win. California officials have shown themselves to be incompetent boobs in these matters.

[Robert357]

Wrath of Kahn......yes, I wonder if Kahn will fall on his own sword (or die at the help of the ship he commands) as this court battle plays out. Beam me up Scotty!

I sure hope that the FERC attorneys have fun cross examining the California & Cal ISO witnesses. Based on the misdeeds we all know about at the ISO, they could be made to look really foolish.

[Carry_Okie]

I have no doubt who will win. California officials have shown themselves to be incompetent boobs in these matters.

I doubt Davis et al care who wins. It creates an effictive opportunity for political posturing that will easily last until the election. If Davis wins the election, does it matter who wins in court?

[Dog Gone]

It matters because if Davis wins the election but loses the court battle, he won't be able to make his fascist California Power Authority a tool of social engineering.

[Carry_Okie]

Once he has the power he doesn't care. If he can't use ISO, he'll find some other way.

[Dog Gone]

I suppose that's right. He can still attack energy providers through the radical environmental agenda.

[Carry_Okie]

Yep. All those appointments to state boards, the PUC, leverage on local government to refuse permits, transportation regulaton... He has a lot of weapons that are within his authority and the media, legislature, and the courts to back him up. It would be hell for FERC to enforce anything when he can just ratchet up another crooked twist.

[Dog Gone]

FERC may not be able to defeat Davis, but they certainly can and will defeat Cal ISO. That should at least leave open the possibility that California might have functional free-market access to power sometime in the future.

[Carry_Okie]

In the mean time, it looks like Knight-Ridder could use a little market discipline for this kind of collusive propaganda.

I just mailed out 800 mondo Dump stickers, soon to adorn the political landscape.

[Dog Gone]

We'll want to see some pictures of them on dumpsters, dump trucks, etc., ya know...

[Carry_Okie]

Heheheheh

[randita]

The state still doesn't trust FERC, and needs to keep its hands on the power grid and the markets attached to it, Kahn said. "Somewhere in the state apparatus needs to be imbedded the ability to prevent us losing another $40 billion," he said.

Apparently, Mr. Kahn's parents failed to teach him a lesson my parents taught me when I was in Kindergarten--"There's no such thing as a free lunch."

The "ability" that should be imbedded in the "state apparatus" is enabling power producers to charge customers the market rate for the power they consume. But that "ability" doesn't keep liberal voters on the plantation.

I'll bet that FERC would be content to see CA lie in the bed they've made, but FERC has to do whatever possible to keep CA from dragging neighboring states into that bed with them.

The CA ISO will be busted up.

[snopercod]

Good comments.

Somewhere in the state apparatus needs to be imbedded the ability to prevent us losing another $40 billion...

The way I read what Kahn is saying, he thinks "us" means the government, not the people. His only concern is that he and his liberal friends don't have quite as much of the people's money to play around with.

Also, I think this is the first time I have heard them admit the true cost of their incompetence. $40 billion sounds about right.

[randita]

Also, I think this is the first time I have heard them admit the true cost of their incompetence. $40 billion sounds about right.

Good catch. But in that $40 billion, is the financing cost of borrowing figured in? If not, in 10 year's time, that $40 billion estimate could jump up significantly.