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California - Energy deregulation writer to head up governor's budget team
Associated Press ^ | 12-20-02 | ALEXA H. BLUTH

Posted on 12/20/2002 2:31:10 PM PST by Oldeconomybuyer

Edited on 04/13/2004 2:41:33 AM PDT by Jim Robinson. [history]

SACRAMENTO, Calif. (AP) -- In a move some call bold and others call baffling, Gov. Gray Davis has chosen a key architect of California's disastrous foray into electricity deregulation to help solve the biggest budget crisis in state history.

Davis wants former legislator Steve Peace as his top budget adviser to help him handle a staggering deficit that was created in part by the 2000-01 energy crunch, in which California was forced to spend billions to keep utilities afloat.


(Excerpt) Read more at sfgate.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events; Politics/Elections; US: California
KEYWORDS: calgov2002; davis
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Stupid is, as stupid does.
1 posted on 12/20/2002 2:31:10 PM PST by Oldeconomybuyer
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To: Ernest_at_the_Beach
bump
2 posted on 12/20/2002 2:34:47 PM PST by Libertarianize the GOP
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To: Oldeconomybuyer

I think it was this ad campaign that put him over the top!

3 posted on 12/20/2002 2:38:12 PM PST by F-117A
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To: F-117A
Perhaps these are the "Killer Tomatoes"
4 posted on 12/20/2002 2:40:11 PM PST by F-117A
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To: F-117A
Most interesting!
5 posted on 12/20/2002 2:45:07 PM PST by Ernest_at_the_Beach
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To: Libertarianize the GOP; *calgov2002; Grampa Dave; Carry_Okie; SierraWasp; Gophack; RonDog; ...
calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

Other Bump Lists at: Free Republic Bump List Register



6 posted on 12/20/2002 2:45:54 PM PST by Ernest_at_the_Beach
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To: Oldeconomybuyer
"It's ironic that Davis would bring Peace in to fix the problem that has at its roots the disaster that Peace helped create," said Doug Heller of the Santa Monica-based Foundation for Taxpayer and Consumer Rights.

This is in the same category as asking Saddam the Sodomite to certify/insure that there are no weapons of Mass Destruction in Iraq and leaving the investigations for WMD up to him.

7 posted on 12/20/2002 3:28:54 PM PST by Grampa Dave
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To: F-117A
ROFL! ...or maybe this is just Davis' way to say Kiss My A$$!
8 posted on 12/20/2002 4:13:44 PM PST by snopercod
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To: Ernest_at_the_Beach
I seem to have fallen off your bump list there.

?

9 posted on 12/20/2002 4:18:41 PM PST by snopercod
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To: Oldeconomybuyer
Peace produced the cult movie classic "Attack of the Killer Tomatoes."

Now that explains a lot about our energy debacle...

10 posted on 12/20/2002 4:25:13 PM PST by tubebender
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To: snopercod
You are on now, assuming that is what you want!
11 posted on 12/20/2002 6:33:59 PM PST by Ernest_at_the_Beach
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To: Oldeconomybuyer
At least $20 billion was removed from California's coffers
to pay for spot rate electricity, but Davis is blaming the shortfall on reduced revenue from dot coms and high income residents. In a way, it was a good thing Simon lost...
12 posted on 12/20/2002 6:40:24 PM PST by crypt2k
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To: Oldeconomybuyer; lewislynn; Dog Gone; snopercod; Ernest_at_the_Beach; Carry_Okie; dalereed; ...
"Peace released a video last year countering charges that he engineered deregulation. The tape portrayed him as a skeptic of deregulation who shepherded the policy through the Legislature because he wanted to make sure that consumer protection would be included in the final version."

Ok, Lewislynn, this here should finally settle the argument you've desperately hung onto by your fingernails!!!

This is the DEMOCRAT State Senator that made what WAS "Deregulation" into a phoney failure by putting that idiotic element of not allowing utilities to pass through ANY increased costs in the form of rate increases "...because he wanted to make sure that consumer protection would be included in the final version."

Yes, the Governor signed it with that flaw in it, but even you would have signed it to get some kind of deregulation from the costly regulation we'd had up to that time. Our high rates of electricity were keeping business and industry from locating here due to 8 cents and more per kilowatt hour!!!

Now I want to see you come on here and finally admit your have been terribly mistaken in your Repellican Party bashing. I have left the Repellican Party myself, but certainly NOT for the mistaken reasons you have proffered ad nauseum!!!

13 posted on 12/21/2002 2:38:25 PM PST by SierraWasp
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To: Ernest_at_the_Beach; marsh2; steelie; dalereed
This will be an absolute disasster for all 58 CA Counties!!!

This is the same Buttonholer that forced Pete Wilson to balance the last budget crisis on the backs of the Counties with that infamous ERAF legislation around 1992/93!!! This disaster basically changed Prop 13 into a tool to consentrate both money and power away from local governments to the centralized monstrosity in the Crapitol!

Counties, Cities and Special Districts still haven't recovered from that fiasco and now Dumbell Davis is gonna clobber the governments closest to the people with this "Attack of the killer tomatoes," PEACENIK!!!

Now we're gonna be tossed from the fryin pan, right into the danged FIRE!!!

To those of you I have flagged, except Ernest, who have been/are involved with government at the State/Local level, or anyone I have missed, please correct me where I am wrong about this.

14 posted on 12/21/2002 2:51:18 PM PST by SierraWasp
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To: Oldeconomybuyer; snopercod; lewislynn
Oh boy! Maybe lewislynn will explain to us (again) how Jim Brulte really wrote the deregulation legislation when he was (supposedly) Assembly Speaker (a position he never held).
15 posted on 12/21/2002 3:19:56 PM PST by Carry_Okie
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To: Ernest_at_the_Beach
Peace produced the cult movie classic "Attack of the Killer Tomatoes."

"Steve ...also has the emotional firepower to destroy anybody in his way and create a lot of wake wherever he goes."

OK, so Davis knows he needs a pit-bull to run the budget battle over the next 10 months. Davis choose somebody who will lie, cheat, steal, and leave bodies laying around to get something passed that the Gov wants, regardless of if it will work or not. This should be interesting to see the pit-bull nip at the Wall Street Analysts. They may not respond well to such an approach. Davis has alienated FERC and not he is likely to alienate Wall Street and many within his own party. Should be interesting pressure politics to watch.

California's budget woes are largely the result of the national recession and the stock market slump. But many also blame the power crisis.

"Things were shaky economically in 2000, but when California began to fall apart as a result of deregulation, the house fell off the cliff," Heller said.

16 posted on 12/21/2002 4:40:25 PM PST by Robert357
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To: SierraWasp
RE: Daniel Weintraub column.

Dear Louie:

Here is a copy of the article you are seeking.

Jackie/BeeSearch

1/30/01 Page B7 Editorials
Daniel Weintraub The Sacramento Bee

Deregulation bill author has dodged the bullet

Jim Brulte is hard to miss. As leader of the Republicans in the state Senate and a close California adviser to President Bush, Brulte is one of the Legislature's most visible members, in more ways than one. With a massive physique that might qualify him for a spot on the offensive line of a National Football = League team, Brulte doesn't exactly slink his way through the Capitol.

But somehow he has escaped serious scrutiny for his role in shaping the bill now widely considered the state's biggest self-inflicted wound of the last decade, if not the century. Brulte was the author of the 1996 law that restructured California's electricity industry.

The senator from Rancho Cucamonga doesn't like to talk much about the bill that bears his name. But back then he was a proud father beaming over his new baby.

"This is a bill that I think will go down in the history books as one of the most far-reaching and forward-thinking pieces of legislation," Brulte said as the measure cleared the = Assembly floor in August 1996.

Well, Brulte's bill is making the history books. But not in a chapter titled "Forward Thinking." Instead, the law has been blamed by many for unleashing the forces that ruined California's electricity industry and brought consumers, and the state, to their knees: rolling blackouts, price spikes and perhaps a load of debt as far as the eye can see.

The outcome has all but ended the political career of another legislator, Sen. Steve Peace of San Diego County. Peace, who was chairman of the Assembly-Senate conference committee that crafted the bill, has become known as the architect of electricity deregulation. He has dropped plans to run for statewide office and is hardly involved, at least in public, as the Legislature grapples with the crisis.

But there's Brulte, still in the thick of things. As Republican leader, he has been one of four legislators working closely with Gov. Gray Davis to hammer out a rescue plan. Davis is so enamored of Brulte's help that the governor's press secretary said the other day he'd like to outfit the lawmaker with a Superman costume.

Brulte is unapologetic. Although he once proclaimed AB 1890 one for the history books, he now says his bill was overrated. By the time the Legislature got into the act, he says, the Public Utilities Commission (PUC) had already voted to deregulate electricity. The governor at the time - Pete Wilson - threatened to veto any bill that more than tinkered with the PUC's plan. Brulte provided a copy of a letter Wilson wrote to federal regulators that backs up this claim.

"The Wilson administration was at the table with us the entire time, and they let us know the parameters under which we could operate," Brulte said in an interview. "We knew exactly what we could put in and what we could not. We could not deal with any structural changes to the PUC order."

Brulte, though, didn't exactly march into Wilson's office and demand more leeway. He and the other members of the conference committee made a few changes to the PUC plan, winning the support of environmentalists and labor unions, and neutrality, rather than opposition, from several consumer groups. Then they sent it on its way.

"It was absolutely the right thing to do," Brulte said. "Deregulation was a fait accompli. It was just a = question of mechanics."

The problems, in Brulte's view, came after his bill was signed into law. California's economy, and its demand for energy, = grew faster than legislators expected. A consumer group, meanwhile, = qualified an initiative for the 1998 ballot that threatened to repeal much of the new law. The uncertainty kept investors from pushing new power plants until the measure, Proposition 9, was defeated.

The energy shortage was compounded by two PUC decisions not envisioned by lawmakers, he said. One came when the Wilson commission encouraged the old monopoly utilities to sell all but their nuclear and hydroelectric power plants. The other was when the Wilson PUC held religiously to its view that the utilities should not buy power under long-term contracts as a hedge against future price increases. This lethal mix of policies left the utilities, and consumers, far too vulnerable to the private companies that bought the power plants and quickly learned how to play the market to their advantage.

Brulte concedes that, in hindsight, perhaps the = Legislature should have intervened to fix the PUC's mistakes.

"Everyone in the Legislature wanted to believe that the PUC commissioners, these five experts appointed by the governor Wilson and confirmed by the Senate, knew more about the utilities and the electricity markets than we did," he said. "In retrospect, it's kind of clear in some cases they didn't. In many cases they didn't."

So there's Brulte's story: The governor made him do it. Projections were wrong. The experts screwed up. All these things are true. But Brulte is supposed to be the smartest Republican in Sacramento. Smart people ask questions. Now he's got another chance. Let's hope this time he does more than simply go with the flow.

Daniel Weintraub's column appears on Sundays, Tuesdays and Thursdays. He can be reached at (916) 321-1914 or at dweintraub@sacbee.com.

17 posted on 12/21/2002 5:32:44 PM PST by lewislynn
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To: SierraWasp
"Blame, hell," said Pete Wilson. "I take credit for having been the driving force to launch deregulation."
18 posted on 12/21/2002 5:35:52 PM PST by lewislynn
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To: lewislynn; Ernest_at_the_Beach; dalereed; steelie; snopercod; Dog Gone
"The outcome has all but ended the political career of another legislator, Sen. Steve Peace of San Diego County. Peace, who was chairman of the Assembly-Senate conference committee that crafted the bill, has become known as the architect of electricity deregulation. He has dropped plans to run for statewide office and is hardly involved, at least in public, as the Legislature grapples with the crisis."

Oh for Pete's sake!!! Everybody knows The Sacramento Bee Ess is nothing but Democrat Toad Stool!!! Weintraub is such a Demonicrat Stoolie that he only gave one paragraph to the real culprit, the architect, which YOU conveeeeeeeeeeeniently LEFT without emphasis!!! Doesn't your conscience bother you at all??? Get Real!!!

Besides, even you should understand the difference between Weintraub's EDITORIAL "(1/30/01 Page B7 Editorials)" and an actual NEWS article. Even the news articles in this Commonist rag are famous for their not so subtle editorial content!

You really are going to go down with your own bull ship on this thing you have for one San Diego politician over the other San Diego politician, aren't you. How sad!!! You are entitled to your "feet in concrete" point of view, however, I remind you, it has very little, if any, socially redeeming features.

What Brulte designed and Wilson signed would have worked had Steve Peacenik not booby trapped it with insane "consumerist" subjectivity. The Democrat put the poison pill in the bill and everybody but you knows it. That should be embarrasing to you, one would think. But I guess ignorance is bliss!!!

19 posted on 12/21/2002 6:57:54 PM PST by SierraWasp
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To: lewislynn; Grampa Dave
Notice he says "launch!" Like everyone else, he was prayin the Peace "Poison Pill" could be extricated before the gas hit the fan. We've seen you hang your hat on these postings before. They were useless in your defense then, as they are now. Give it up! See the fork comin at ya? Yer Done!!!

Hey Grampa... I fergot ta ping ya to my last replay to this guy.

20 posted on 12/21/2002 7:05:38 PM PST by SierraWasp
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