Message-ID: <20135029.1075851606173.JavaMail.evans@thyme> Date: Thu, 12 Jul 2001 21:23:00 -0700 (PDT) From: scottwl@hotmail.com To: jeff.dasovich@enron.com Subject: Re: Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Scott Laughlin X-To: Jeff.Dasovich X-cc: X-bcc: X-Folder: \Dasovich, Jeff (Non-Privileged)\Dasovich, Jeff\Deleted Items X-Origin: DASOVICH-J X-FileName: Dasovich, Jeff (Non-Privileged).pst It's no coinicidence that there're three I's in polItIcIan. What, you live in Sacramento now? When're we going to play? >From: Jeff.Dasovich@enron.com >To: eldon@direcpc.com, psellers@Haas.Berkeley.EDU, cameron@perfect.com, >scottwl@hotmail.com >Date: Wed, 11 Jul 2001 12:03:33 -0500 > >Dan Walters: Davis plays in a virtual world while the energy reality >continues > > >(Published July 11, 2001) > > >California still has a very real and very severe energy crisis, to wit: > > >(Embedded image moved to file: pic08526.gif)The state is still running up >massive debts as it pays more for power than it can recover from ratepayers >and is having trouble borrowing billions of dollars to cover the debt. > > >(Embedded image moved to file: pic13357.gif)There is a strong possibility, >perhaps a probability, that when summer's heat truly descends, there will >be severe power blackouts as air conditioners demand more juice than >California can generate or buy. > > >(Embedded image moved to file: pic29337.gif)One major utility, Pacific Gas >and Electric, has filed for bankruptcy protection and a second, Southern >California Edison, is on the brink of joining it. > > >There is, however, a virtual energy crisis consisting of political spin, >media leaks and made-for-television buzz words -- and it is rapidly >becoming dominant, while the real situation fades into the background. > > >This week's comic opera proceedings before a Federal Energy Regulatory >Commission administrative judge in Washington had little to do with reality >and everything to do with the virtual version. > > >Gov. Gray Davis and other officials demanded $8.9 billion in refunds from >the generators and brokers who have been selling California power for the >past year, alleging that California is, in Davis' words, "being gouged and >ripped off." But the number itself was more or less plucked out of thin air >-- an arithmetic exercise by the state power grid's traffic controller not >intended for a refund proceeding. And while Judge Curtis Wagner saw it as >unrealistic, Davis and other state officials insisted on its validity. > > >"There are refunds due that total hundreds of millions of dollars and maybe >a billion dollars," Wagner said as a final negotiating session collapsed. >But that's a far cry from the $8.9 billion that Davis insists is due. "If >you think California is going to settle for $1 billion in refunds, we will >see you in court," Davis said Tuesday. > > >Why is Davis being so belligerent? Because it's good politics. Ever since >he began berating out-of-state generators and accusing them of ripping off >California, Davis' approval ratings have been climbing. If he settled for >substantially less -- the power generators probably would agree to a couple >of billion dollars to rid themselves of the matter -- Davis would be >embarrassed. Politically, he's served by continuing to portray himself as >fighting for California and against the out-of-state generators. > > >That it's more political construct than reality is indicated by another >event this week, Davis' release of state power purchase data from early in >the year -- numbers that were made public only because a judge told him he >had to do it. > > >Davis and his minions have been accusing Texas-based generators and power >brokers of particularly egregious price gouging -- clearly playing on >Californians' instinctive mistrust of anything Texan and implying that >Texan George W. Bush is a co-conspirator. But the power purchase records -- >which were released only to journalists willing to pay a stiff fee -- >indicate that less than 10 percent of California's power purchase dollars >were going to Texas and the private sellers, in general, charged the state >less than such publicly owned utilities as the Los Angeles Department of >Water and Power. > > >The clearly adverse position being taken by FERC and the purchase data that >undercut his jingoistic sloganeering are not, however, deterring Davis from >continuing to operate, at least for public consumption, in the melodramatic >virtual world. > > >One cannot, however, ignore reality forever. The likelihood of a >pro-generator decision from FERC means that there will be no easy out for >Davis, or for his pending deal to prevent Southern California Edison from >slipping into bankruptcy court. The Legislature has refused to act on the >Edison rescue plan while it awaited an indication of whether the utility's >debts would be slimmed down by FERC. > > >This week's farcical events make it more likely that the Edison deal will >stall out permanently in the Legislature and its creditors will force the >utility into bankruptcy court later this summer. That's part of that nasty >old reality that cannot simply be wished away. > > > >The Bee's Dan Walters can be reached at (916) 321-1195 or >dwalters@sacbee.com. > > > > > > ><< pic08526.gif >> ><< pic13357.gif >> ><< pic29337.gif >> _________________________________________________________________ Get your FREE download of MSN Explorer at http://explorer.msn.com