Friday, August 15

So Why IS California Going Through This Recall?

The Observer's Greg Palast writes a magnificent article on how the utility companies - mainly Enron - gamed the market, inspired by yesterday's blackouts. Within the article is the California story, and a very concise summary on how our state fell into an economic abyss.

If you don't know why the recall is happening - or if you're a Californian - you ABSOLUTELY MUST take a minute to read this:

California fell first. The power companies spent $39 million to defeat a 1998 referendum pushed by Ralph Nadar (sic) which would have blocked the de-reg scam. Another $37 million was spent on lobbying and lubricating the campaign coffers of the state's politicians to write a lie into law: in the deregulation act's preamble, the Legislature promised that deregulation would reduce electricity bills by 20%. In fact, when in the first California city to go "lawless," San Diego, the 20% savings became a 300% jump in surcharges.

Enron circled California and licked its lips. As the number one contributor to the George W. Bush campaigns, it was confident about the future. With just a half dozen other companies it controlled at times 100% of the available power capacity needed to keep the Golden State lit. Their motto, "your money or your lights."

Enron and its comrades played the system like a broken ATM machine, yanking out the bills. For example, in the shamelessly fixed "auctions" for electricity held by the state, Enron bid, in one instance, to supply 500 megawatts of electricity over a 15 megawatt line. That's like pouring a gallon of gasoline into a thimble -- the lines would burn up if they attempted it. Faced with blackout because of Enron's destructive bid, the state was willing to pay anything to keep the lights on.

And the state did. According to Dr. Anjali Sheffrin, economist with the California state Independent System Operator which directs power deliveries, between May and November 2000, three power giants physically or "economically" withheld power from the state and concocted enough false bids to cost the California customers over $6.2 billion in excess charges.

It took until December 20, 2000, with the lights going out on the Golden Gate, for President Bill Clinton, once a deregulation booster, to find his lost Democratic soul and impose price caps in California and ban Enron from the market.

But the light-bulb buccaneers didn't have to wait long to put their hooks back into the treasure chest. Within seventy-two hours of moving into the White House, while he was still sweeping out the inaugural champagne bottles, George Bush the Second reversed Clinton's executive order and put the power pirates back in business in California. Enron, Reliant (aka Houston Industries), TXU (aka Texas Utilities) and the others who had economically snipped California's wires knew they could count on Dubya, who as governor of the Lone Star state cut them the richest deregulation deal in America.

Californians have found the solution to the deregulation disaster: re-call the only governor in the nation with the cojones to stand up to the electricity price fixers. And unlike Arnold Schwarzenegger, Gov. Gray Davis stood alone against the bad guys without using a body double. Davis called Reliant Corp of Houston a pack of "pirates" --and now he'll walk the plank for daring to stand up to the Texas marauders.

And ladies and gentlemen, this is exactly why, without exception, every single human being who signed the recall petitions should be forced to vote on October 7th - repeating - WITHOUT EXCEPTION. If ANY SINGLE ONE of these frothing-at-the-mouth nitwits don't bother to show up, the entire process should be declared null and void.

It's only fair to those of us who bothered to vote last November.