Ray,
an aside:
When it comes to politics and influence, in matters of electrical power or even more importantly, water; IMHO nobody came close to power held (still held?) by the LA DWP. IMHO The DWP is just simply, the most awesome organization in the State of California. I don't believe that any organization within the state (state, local or private) has the power or influence of the LA DWP. They transport most of the electricity and water that is used in LA hundreds of miles often across state borders. Their exert power that turns thousands of square miles green, and thousands of square miles brown. The DWP IS the reason that Los Angeles is the 2nd largest City in the United States.
on subject-
IMHO California's problems has more to do with the State than the Feds, or President Clinton's FERC. Even if the guys from TX fooled the Governor, Lt. Governor, every member of the State Assembly, every member of the State Senate, the voting members of the PUC and FERC, when it was clear that the state had a problem, the institutions with the power and responsibility for overseeing electrical power in the State were either sitting on their hands or being stupid.
The California PUC. I believe The PUC still has the responsibility to set retail rates in the State. It should have been clear to them that SDG&E, SCE and PG&E were in trouble. I heard that they claim that they were used to a cost plus situation, but with the selling of utility owned power plants, they didn't know the cost of producing energy. Well they certainly knew what the energy was costing the utilities. I'm sure that the utilities were more than happy to divulge the cost of wholesale energy vs. retail prices. They did far too little, far too late. I don't even remember them warning Californians, last summer, that unless serious conservation took place, large price increases would have to be made (and if they did, they certainly weren't beating a drum). Further, they still haven't addressed those issues that are necessary to implement the Governor's bailout of SCE (and don't even seem willing to fast track it-or so I've read).
The Legislature. The legislature had the power to force SDG&E to not implement a LEGAL rate increase. They could have changed those parts of the deregulation bill that were clearly broken (like no long term contracts, and a bidding protocol that is stupid beyond belief - I doubt the FERC would have objected to CA adopting protocols more in line with other States). They passed a stupid bill 5 years ago, so they don't do anything to fix it? To my knowledge, Governor Davis still hasn't found two legislators with enough balls to sponsor his SCE bail out bill.
The Governor. The governor to his credit has used emergency power (as Pete Wilson reminded us is available to the Governor), and IMHO has done more than anyone else (of course he's got the most to lose - politically). He has entered into secret negotiations with suppliers (with no legal over site that I know of), entered into long term contracts (that weren't legal according the the deregulation bill), and is spending billions of taxpayer dollars with the promise of someday soon accounting for where it is all going. He has jaw boned or threatened everyone with an extra electron in order to get power cheaper. But couldn't he have used at least some of this power last summer, or fall, while the utilities were able to use their own money? The market was almost as broken back then. Did he have to wait till he was forced to use billions of public money SECRETLY? And wasn't he the Second Highest Elected Official in the State of California when the deregulation bill was passed?
California Consumers, who STILL are fighting the siting of power plants in their cities. AES wants to upgrade 50 year old power plants-so they can produce more (and pollute less?)locals fight it. Someone wants to build a small 50MW peaker in Los Angeles, locals are fighting it. Southgate successfully fights a peaker being built their community (last November's election). Calpine wants to build a plant in San Jose, after TWO years, and a full year into the crisis, the San Jose local government is coming on board. |
