Lawmaker: US GAO Finds Calif Pwr Crisis Due To Shortage

Wall Street Journal (paid subscribers only) ^ | June 24, 2002 | Bryan Lee of Dow Jones Newswires

[snopercod]

WASHINGTON -- California's electricity crisis was the result of demand getting "too close" to available supply as well as the economic and regulatory disincentives that blunted new power-plant development, the U.S. General Accounting Office said in a report released Monday.

[snopercod]

Ose also found support in the GAO study for his demand that federal energy regulators act to end control of the state's power-grid administrator by appointees of Gov. Gray Davis.

[snopercod]

Memo to Davis: Instead of whining about out-of-state providers, maybe you should consider allowing companies to build some plants in your pristine little state there. Then you won't have to whine any more.

But of course you won't have a campaign issue any more, which is apparently all you care about. The welfare of Californians has never been a concern of yours, ever since you set your sights on DC.

[billybudd]

Ohmigod, the energy crisis was caused by a shortage??? And here I was, thinking that it was caused by oversupply! What would we do without our trusty gubmint?

[Robert357]

Thanks for the report.

The report cited state control of the California Independent System Operator, or CAISO, and concerns that the power-purchasing state Department of Water Resources will receive favorable treatment in the state's electricity market, as contributing to regulatory uncertainty stalling investment in new generation in California.

"As I have repeatedly said, Davis's Gov. control of the CAISO is a serious problem for California," Ose said. "When the government controls the marketplace and simultaneously represents the largest market participant, it sends a chilling signal to other market participants," he said.

When the history is written on the Calpowercrisis and the truth is known, the real important statement will be.....'Davis's Gov. control of the CAISO is a serious problem for California'...

Earth to Gov. Davis, That $9 billion you keep talking about (although it is actually less) is all your fault. Some contingency attorney should file a class action lawsuit against you. I would love to see you repeat on the stand your statements about how you could solve the energy prices in a matter of moments if you wanted to, but then found that you needed to depend on the FERC and Clinton and didn't get the handout you went to DC to ask for and then blamed Bush/Cheney for all your problems. Yes, Gov. Davis, it is your fault. The captain is blamed if the ship sinks and the Governor is blamed if the state's economy sinks. Have some honor and go down with your ship without wimpering about how unfair it all is.

[snopercod]

Ohmigod, the energy crisis was caused by a shortage???

Not according to lewislynn. It was all Pete Wilson's fault.

[Robert357]

Interesting, they haven't posted this study on the federal gao website yet. The only thing on the GAO.gov website was about FERC. The abstract is as follows....

Energy Markets: Concerted Actions Needed By FERC To Confront Challenges That Impede Effective Oversight GAO-02-656 June 14, 2002

The Federal Energy Regulatory Commission (FERC) has not yet adequately revised its regulatory and oversight approach to respond to the transition to competitive energy markets. FERC recognizes that the change from highly regulated monopolies to competitive markets requires it to fundamentally change how it does business. However, it has struggled through various strategic planning and other efforts to define the specific strategies, processes, and activities to regulate and oversee these markets. GAO found that FERC (1) has had difficulty recruiting staff because it has trouble competing with private sector salaries; (2) faces the retirement of over one-quarter of its employees by 2005; (3) has used recruitment bonuses, retention allowances, tuition reimbursement, and flexible work schedules to attract new staff and to retain current employees, but it has not taken advantage of the full range of personnel flexibilities and tools available to federal agencies, such as special salary rates; and (4) has not developed a strategic human capital management plan to assess its workforce needs and to develop strategies to address them.

I wonder if the Wall Street Journal got a "leaked" copy of a GAO report that is about to come out?????

[Robert357]

Of course there is another explaination!

The secret, root-cause of the California Energy Crisis?CLICK HERE!

[Ernest_at_the_Beach]

Thanks for sharing this with us!

Calpowercrisis:

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[SierraWasp]

"Not according to lewislynn. It was all Pete Wilson's fault"

(grin)(smirk)(snort)(bwaaaaaaaaahahahahahaaaaaaaaaah!!!)

[Dog Gone]

California's electricity crisis was the result of demand getting "too close" to available supply as well as the economic and regulatory disincentives that blunted new power-plant development, the U.S. General Accounting Office said in a report released Monday

That finding doesn't come as a shock to many here at FR who have followed this from the start.

It can't be pleasing to those who argue that it was caused by other reasons. Read it and weep, lewislynn.

[tubebender]

It would not take too big an effort to disable a few transmission lines to bring Calif to a stop. How can you guard every transmission tower that is crirtical to distrubution of electricity? Do you remember when the bay area had a blackout a few years ago when a substation failed? PG&E was roasted over this incident. I know this is off subject some what but it points out how close we are to more black outs.

[Libertarianize the GOP]

thanks for the ping

[Ernest_at_the_Beach]

You are right, and Davis and crew want to move to Central Plan and Control based on the Soviet model.

The environmentalists are forcing it upon the citizens just like they forced their policies on the US Forest Service and we see the consequences as Arizona burns tonight!

[NormsRevenge]

The environmentalists .. Another Enemy Within ... Kruschev May have Been Right.. When He Said "We Will Bury You".. He May Have Meant to DO IT Thru A Bloated Bureaucracy and Weeping Hearts
DUMP DAVI$ & the Den of Socialists



GO SIMON

[lewislynn]

Not according to lewislynn. It was all Pete Wilson's fault. And according to you it's all Gray Davis' fault.

Don't take my word for it

California's energy crisis: Who missed the warning signs?

In a recent interview, Wilson said he knew four years ago that the deregulation law he signed ``was not a perfect free-market mechanism'' and that ``course corrections'' probably would be needed. But while criticizing his successor for not acting sooner to boost electricity production, among other steps, Wilson acknowledged that he never sponsored legislation to expedite new power plants. ....In eight years as Governor...

It's somehow not reassuring to think the central government agency GAO is really knowledgeable with California's energy problems.

Republicans calling for investigations on Republican issues then expecting anything but favorable results....As if Republicans are any different than Democrats in that regard.

OH, BTW, at least part of the reason for so called shortages was THE FACT that the energy companies were sending electricity all over the western states to nowehere except up in price...If you don't believe that then explain why the "shortages" suddenly stopped and the prices dropped as quickly as the investigations began....Why all the HUGE layoff's and closing of trading?...Is there THAT much less electricity demand?...

I don't think so. The question(s) can be answered with one word 'investigations'.

Read the papers, energy companies are run by crooks, not saints.

[snopercod]

Maybe this will work:

[randita]

CA is cruising for a rude awakening concerning its liberal shortsightedness toward their energy needs. It narrowly averted a crisis last summer due to cooler temps and the fact that Davis mortgaged away the state's economic future to make sure he wouldn't be blamed for black-outs.

Davis will be even more desperate to keep the lights on this summer. But I don't know what Davis can do to guarantee the lights stay on. The state is fiscally in very bad shape--don't know how Davis could get his hands on enough money to guarantee a steady flow of power should pre-purchases run short.

[Robert357]

Thank you. I give, what is the Html code you used to post the picture?

Hopefully, you enjoyed the local political cartoonist.

It was done at a time when anti-California feels were pretty strong, so I apologize for that.

[d14truth]

GRAY Power

'Hare' today, gone tomorrow!

[Ernest_at_the_Beach]

Oh a new series!