Posted on 03/08/2002 8:03:29 AM PST by Gophack
Displaying anger and exasperation, Gov. Gray Davis vigorously defended his handling of California's energy crisis yesterday and asserted that his policies saved the Golden State from severe economic decline.
"I kept the lights on," Davis said in an interview with editors at The San Diego Union-Tribune. "It just sounds a little presumptuous, but I think I should at least get a round of applause. I don't get squat."
Davis also drew a sharp distinction between himself and Bill Simon, his Republican challenger in the governor's race, declaring that he opposes deregulation, which Simon supports.
"Deregulation was a total scam to rip off consumers," Davis said of the 1996 legislation that ended regulation of much of the state's electricity supply.
The governor said he rejected suggestions from power companies to raise rates to cover soaring costs – as they did during the first months of the crisis in San Diego – because that would have caused 400 percent increases for consumers.
On the other hand, Davis said he rejected, for practical reasons, the idea of seizing power plants and compensating their owners.
"I didn't think seizing a power plant that is 30 to 40 years old would be a good expenditure of money," Davis said, referring to the state's aging power plants.
Instead, Davis said he tamed the crisis through conservation, speeding power-plant approvals and negotiating long-term contracts, along with assistance he acknowledged from federal regulators who imposed price controls.
Davis bristled when asked about criticism that he panicked and paid too much for power in those long-term agreements.
"If I didn't panic, you wouldn't be able to put out your paper," he said, visibly agitated. " . . . I kept the lights on in this state, do you understand that? I kept the lights on! (Critics) don't know what they're talking about."
The agreements were signed at the height of the electricity crisis last year and bind the state to $43 billion in electricity purchases over two decades, at prices now more than twice the going rate for electricity. Davis said he is continuing efforts to renegotiate the contracts.
"We are very close to a substantial reduction with one of the generators," Davis said.
But the governor added that only a minority of the suppliers is negotiating in good faith for new terms in the agreements, which the state is seeking.
"Only about 25 percent of the generators are talking," Davis said. "Another 25 percent are going through the motions and the other 50 percent have told us to take a flying leap."
But Davis said he is confident the Federal Energy Regulatory Commission will assist the state in restructuring the long-term electricity contracts. The governor agreed that the commission might attempt to force California to relinquish control of its electric transmission system as the price of its help with the contracts, but vowed to fight that move.
"There's no advantage for us in joining a regional (transmission grid)," he said.
Davis also reported that he has received "private assurances" from Patrick Wood III, the chairman of the FERC, that rules will be put in place to prevent "disruption" of the California electricity markets, when the electricity price caps expire, which is scheduled for Sept. 30. State officials are asking for extensions of the caps.
He criticized California's electricity deregulation, calling it a "scam," but hinted, as he has in the past, that his assessment might change if the state had electricity generating reserves of at least 15 percent, a cushion he presumably believes would prevent manipulated shortages and gouging.
Davis singled out Dynegy, Duke and Reliant – major state suppliers – for exacerbating the crisis of 2000 and 2001 by charging high prices.
Surprisingly, Davis offered a pat on the back to Enron, the bankrupt Houston power trader accused of fraud. "Enron was the best of the lot," he said. "They dealt with us more honestly."
But Enron, once the nation's largest electricity trader, stands accused by Attorney General Bill Lockyer and others as having been a prime force behind the manipulation of the state electricity.
Enron and other suppliers deny the charges and say the crisis in California was caused by electricity shortages.
During the height of the crisis, Davis repeatedly accused Texas-based power executives of price-gouging.
Looking toward the November general election, Davis confidently predicted he will defeat Simon by 10 percentage points and suggested his opponent, a political neophyte, lacks the experience to be chief executive of the nation's most-populous state.
The governor's comments marked his most-detailed defense of his energy policies since learning Tuesday night that his opponent will be Simon, a Los Angeles businessman who argues that growth and prosperity are best nourished by reduced taxation and regulation.
Davis' comments were made during a question-and-answer meeting with the Union-Tribune editorial board, attended by editors and reporters from the newsroom. The board regularly invites newsmakers to discuss current events.
Davis touts himself as a pro-business Democrat, but he said government intervention in markets is appropriate during emergencies. "If there ever was a role for government, it is to make sure the unbridled market does not make the state dark," he said.
Placing himself back at the peak of the crisis, Davis said: "What am I going to do? The utilities are in bankruptcy. Nobody can buy the power; there's no credit-worthy buyer. What would you have done? Tell me what you would have done?"
Had the state not signed the contracts, Davis said, "we would have (had) several more blackouts, businesses may have left the state . . .
"You hired me to get a job done, I got the job done and I'm plenty tired of people sitting on the fence saying, 'Oh, we should have done this, and should have done that.' Let them run for governor."
Earlier yesterday, Davis toured a new skilled nursing facility at the Veterans Home of California in Chula Vista, meeting with its first four residents.
Davis told Terry Boucher, a World War II Navy veteran: "You look awfully darn good."
Staff writer Amy Oakes contributed to this report.
Just to funny!! ROTFLMAO! BWAHAHAHAHAHAHAHAHA!
Grayout Davis was so proud when he signed these agreements last year. But now he wants to renegotiate the agreements. What this tells me is that he is a bandaid fix type of governor going for the sound bite and not the long term solution. Although a lot of politicians do this on both sides of the aisle, he is more blatant than most.
The 50% telling him to take a flying leap are simply pointing out that he signed a contract and he will have to live up to that contract. The utilities may make handsome profits which they will pass on to their investors. Look in the portfolio of most managed retirement accounts. What do we see? Some utilities investments! So Davis wants to reduce the returns on our retirement accounts to make himself look good. He is truly a Gray Clinton!
The lights were on...
and nobody was home.
Whoever is the next Governor of California (Mr Simon, I hope) is going to have a full-time job just trying to clean up the fiscal mess Davis has created.
It's not easy to bankrupt the richest State in the richest nation in the world- but Davis and his malignant cronies came very close...
A blast from the past: Closet Wacko
Another blast from the past: A Symphony of Obscenities
Yeah, thanks for not plunging your state's economy into full-on depression. You call that an accomplishment?
"Dad, I brought the car home without totaling it and ending up dead in the morgue. Aren't you proud of me? What are you going to give me for my accomplishment"
I'll be having a lactose intolerant, Tom "Bottom-Line" Bodette squat for Grayout just as soon as I return from lunch.
Hat-Trick
I concur with that. This is a guy who is losing it.
He has an impossible task. He is trying to convince people that he did a good job when it's obvious that he was an abysmal failure. He can't spin that he did a good job when he's begging the Feds to undo what he earlier bragged about.
What's unfortunate is that he messed things up so badly that his successor can't easily repair the damage. It's serious and long-lasting.
It sure is nice to see how defensive and worried he is.
You're right. We need to keep the pressure on him. He's supposed to be a disciplined campaigner, but obviously he has an Achilles Heel.
No, it didn't. The authors of this piece are either lying or very ignorant
Not cry, but lose his temper. If he loses his temper, he can and will say anything. It will also show his true personality, a power hungry liberal tyrant.
Worse, a $17 billion deficit!
Some days are like that. But other days he didn't keep all the lights on. Weren't there a few musical chairs blackouts?
Can't be said enough. We need to rattle Davis' chain again and again.
He also broke the bank by selling out the next 10 years of California's future. Most Californians should get a monthly reminder of why they shouldn't re-elect Gray Davis, their electric bill. Mine is up 50% over last year.
I will too!...2 squats for gray!...(See Hindu torture thread above...)...BWAHAHAHAHAHA!!!
FMCDH
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.