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Politics : The Donkey's Inn -- Ignore unavailable to you. Want to Upgrade?


To: Mephisto who wrote (7301)8/16/2003 9:35:19 PM
From: Mephisto  Respond to of 15516
 
A City in Darkness: Reminders and Lessons
The New York Times
To the Editor:

In 2001, Representative Sam Farr sponsored legislation that would
have provided $350 million in loans to modernize the country's power grid. It
was known that there were inherent weaknesses and unreliability in the grid's capacity.

The Bush administration lobbied against this legislation, and Republican members
of the House voted it down.

If this legislation had passed, our most recent infrastructure failure
might not have happened.

LYNN HIGHLAND
Morrison, Colo., Aug. 15, 2003

nytimes.com



To: Mephisto who wrote (7301)8/16/2003 9:43:21 PM
From: Mephisto  Respond to of 15516
 
[BACKGROUND READING]

Enron, Ken Lay, The Bushes, Saddam etc.
>>>>>>>>>>>>>>>>>>>>>>>>

" In April of 2001, Ken Lay handed Dick Cheney a two-page memorandum
recommending national energy policy changes. The memo contained
Enron's positions on specific, rather technical issues, which
were presented as a "fix" for the California crisis.

Excerpt:" Fraud Traced to the White House
How California’s energy scam was inextricably
linked to a war for oil scheme."
yuricareport.com
SI Reference: Message 19132000



To: Mephisto who wrote (7301)8/16/2003 9:46:00 PM
From: Mephisto  Respond to of 15516
 
You Think This Is Bad?

To the Editor:

Considering the inconvenience, outrage and uproar caused by the electrical blackout
in the Northeast and elsewhere, one begins to understand
Iraqis' anger and reaction at having no electricity during three
months of blackouts in 100-plus-degree weather.

WILLIAM T. CORBETT
Hampton, Va., Aug. 15, 2003

August 16, 2003
nytimes.com
A City in Darkness: Reminders and Lessons



To: Mephisto who wrote (7301)8/16/2003 10:49:59 PM
From: Mephisto  Respond to of 15516
 
Ohio line failure likely caused blackout
seattlepi.nwsource.com

Saturday, August 16, 2003 · Last updated 6:01 p.m. PT

By H. JOSEF HEBERT
ASSOCIATED PRESS WRITER

WASHINGTON -- A failure to contain
problems with three transmission lines
in northern Ohio just south of Cleveland
was the likely trigger of the nation's
biggest power blackout, a leading
investigator said Saturday.


Alarm systems that might have alerted
engineers to the failed lines were
broken, according to FirstEnergy Corp.,
the Akron, Ohio-based utility that
officials said owned at least two of the
three lines.

It was not immediately clear whether
that impeded efforts to isolate the local
line disruptions, some of which occurred
an hour before power system shutdowns
cascaded Thursday from Michigan to
New York City and into Canada.

"We are fairly certain at this time that
the disturbance started in Ohio,"
Michehl Gent, head of the North
American Electric Reliability Council,
said in a statement. "We are now trying to determine why
the situation was not brought under control after three
transmission lines went out of service."

Gent said the transmission system was designed to isolate
such problems and suggested that human error might have
been involved in not containing the situation.

"The system has been designed and rules have been
created to prevent this escalation and cascading. It should
have stopped," Gent said in a telephone conference call.

FirstEnergy, which officials said owns four of the first five
lines that failed, said a system that is supposed to flash a
red warning on computer monitors at the company's
control center was not operational when the lines began
failing Thursday afternoon.

FirstEnergy was aware the alarm system was broken, said
company spokesman Ralph DiNicola. A functioning backup
alarm at the Midwest Independent System Operator, a
nonprofit power pool that oversees the region's electrical
grid, was in place, DiNicola said.

At the Midwest ISO, spokeswoman Mary Lynn Webster said
she did not know when workers noticed the FirstEnergy
lines were disabled and what, if anything, they did about it.

Webster said the pool copes with "thousands of alarms
every minute," and that the failed lines weren't in areas
most prone to problems.

A failure in the monitoring system could be devastating
because it prevents operators from isolating failures before
they spread, said Thomas Stuart, a professor of electrical
engineering at the University of Toledo.

Energy Secretary Spencer Abraham, co-chair of a
U.S.-Canadian task force that will look into the cause of the
blackout, said the group is putting together investigative
teams that will include experts from the government's
research laboratories as well as private resources. In
addition to determining the cause, the task force will
recommend actions to prevent a repeat.

The task force hopes to complete an initial report within a
month, the Canadian co-chairman said Saturday. "We want
to move as quickly as possible," said Canada's Natural
Resources Minister Herb Dhaliwal, a former an electric
company official.

Dhaliwal spoke Friday with Abraham and planned to meet
him Wednesday in Detroit to talk about the panel's work.

Gent did not identify specifically the three power line
failures that became the focus of the NERC investigation.
But other council officials said they were among five
reported transmission failures in the Cleveland area
leading up to the blackout peak Thursday afternoon.

According to NERC, the first report came in at 3:06 p.m.
EDT Thursday and involved a 345-volt line that had
"tripped" - or gone offline. That was followed by reports on
other lines failing at 3:32 p.m., 3:41 p.m., 3:46 p.m. and
4:06 p.m.

Two minutes later, according to the NERC summary, "power
swings (were) noted in Canada and the U.S." and three
minutes after that power disruptions hit across eight states.

The transmission system in northern Ohio is operated by
FirstEnergy.

Among the things yet to be determined is the relationship
between lines tripping in Ohio and the unusual power
swings that were observed in lines leaving Michigan and
going into Canada and then back again, according to
investigators.

There are more than 10,000 pages of data, including
automatically generated logs on power flows over
transmission lines, that need to be closely examined, said
Gent.

Complicating the matter, he said, is that at the time of the
power breakdown "events were coming in so fast and
furious that (some reports) ... weren't even being logged in
a timely way."

Nonetheless, Gent said he is convinced that no data was
lost and whatever was not recorded will be recovered.

"We will get to the bottom of this," he said.

---

Contributing to this story were AP writers Andrew
Welsh-Huggins in Columbus, Ohio, Ryan Lenz in
Indianapolis and Jim Krane in New York.

---

On the Net:

North American Electric Reliability Council: www.nerc.com



To: Mephisto who wrote (7301)8/16/2003 11:11:21 PM
From: Mephisto  Respond to of 15516
 
When the lights go out:
It is a wake-up call for serious conservation


Leader
Saturday August 16, 2003
The Guardian

On a hot Thursday afternoon, reported one US public radio
service yesterday, some 50 million people from the Northeast to
the Midwest "had something in common with the people of Iraq -
a power outage that brought life to a standstill".
With respect to
all those who were escorted out of the subway by flashlight, or
were caught in traffic jams for hours, or spent a sleepless night
without air conditioning, the blackout that spread across more
than 9,000sq km was not quite so bad as everyday existence in
Baghdad or Basra. No one risked being shot in the dark during
curfew, there was very little looting, there is no sewage in the
streets, and water and power shortages have not been routine
for months.


Yet it was still a salutary warning not just to the country that is
the world's biggest energy guzzler, but to the rest of the world
that aspires to head the same way. As the New York mayor,
Michael Bloomberg, said with an air of surprised discovery, "all
of a sudden, a few things weren't working and then you realised
how dependent we are on electricity". Unlike the California
blackouts three years ago, this one is not the direct
consequence of ill-judged privatisation.
Although there is some
evidence that deregulated power companies are more likely to
reduce spare capacity - the so-called "spinning reserve" which
can cushion in a crisis - the root cause is much simpler. As
demand grows, the margins diminish and an unforeseen incident
- yesterday there was still argument over what sparked the
outage - can escalate rapidly. Indeed research has shown that
the more sophisticated a power grid becomes in order to provide
maximum peak capacity, the more vulnerable it will be to black
out completely when something comparatively minor occurs.

Among the few pluses on Thursday night was the opportunity for
New Yorkers to see the night stars for the first time in decades.
There were also tales of "calm and ingenuity" as heroes
emerged, like the man who took over traffic control in Ottawa. In
one respect, this outage was unlike any other before: it was the
first time that people came out of their offices or from the
subway blinking in the sunlight and said to one another in a tone
of misplaced certainty "Bin Laden". With or without the terror
factor, it is a wake-up call for energy conservation that no one,
anywhere, should ignore.

guardian.co.uk



To: Mephisto who wrote (7301)8/16/2003 11:52:49 PM
From: Mephisto  Respond to of 15516
 
Which Party Gets the Blame? They Agree: It's the Other One

"Howard Dean, the former governor of Vermont, claimed credit for saving New
England from disaster and argued that the administration was going
in the wrong direction by trying to expand the national grid."


The New York Times
August 16, 2003

By DAVID M. HALBFINGER and KATHARINE Q. SEELYE

With tens of millions of Americans left powerless, the blackout gave Democrats
what they hoped would be a huge new political opportunity -
and they wasted little time in seizing it.

On the campaign trail, Democratic presidential contenders assailed
President Bush for focusing too heavily on drilling for new sources of energy,
instead of on a power grid they called too old and overburdened to meet the nation's electrical needs.

In Congress, Democrats accused Republicans of blocking modernization
of the nation's power-transmission system in 2001.


At the same time, Republican leaders in Congress and conservative
talk-show hosts mounted a counteroffensive, charging that Democrats and
environmentalists had colluded to prevent the overhaul of the power-transmission
grid and blocked legislation on a national energy plan.

"Passage of the energy bill is a vital national interest, and partisan
Democrats stalling it should work with the House to get a realistic program to
the President's desk," said Representative Tom DeLay of Texas, the majority leader.

Even as the nation waited to learn its exact cause, the blackout promised
to heat up a political issue, energy policy, that until now had seemed
remote to many Americans outside of California, which suffered an energy crisis
and rolling blackouts two years ago.

Democratic strategists said the crisis could enable their party to question
whether President Bush was adequately safeguarding the nation's
energy and economic security and to bring back to center stage
his administration's ties to the energy industry.

Mr. Bush himself seemed sensitive to that possibility
when two days in a row he said that he favored modernization of the electrical grid. "I view it
as a wakeup call," he said yesterday about the blackout.

Regardless of who turns out to be at fault, voters often blame
whomever they perceive to be in charge when the lights go out - a fact of political life
with potential ramifications even at the Congressional-district level for
incumbents in areas affected by the blackout.


"Millions of Americans are now well acquainted with our old, antiquated,
not up to par energy system that they have not been paying attention to,"
Senator John Kerry, a Massachusetts Democrat and
presidential contender, said in a telephone interview.
"And this is not a forward-looking
administration that tries to eliminate problems before they occur."

Bill Carrick, a Democratic political consultant based in California, said:
"Nothing gets people going faster than not having power. Just ask Gray
Davis.
Before the energy crisis, his approval rating was consistently in the 50's.
Then it just plummeted."

Two years ago California suffered a series of temporary blackouts as demand
for electricity outpaced older power plants, while a botched
experiment with partial price deregulation and environmental opposition
created disincentives to build new plants. Wholesale electricity prices
spiraled out of control, pushing the state's two private utilities to the
brink of bankruptcy as they were left buying power at market rates at costs
they could not pass on to the consumer.

Although Mr. Davis, who is fighting a recall effort, is the prime example
of how an electrical crisis can harm a public figure, he also seemed likely
to benefit somewhat from the blackout in the Northeast. His allies
were all but claiming vindication, with Representative Nancy Pelosi of California,
the House minority leader, sending out a press release noting,
"Gov. Davis Kept the Lights on in California During the Energy Crisis."

David Freeman, chairman of the California Power Authority, said of Mr. Davis,
"Everyone's counting him out, but I think he got a break yesterday.

"Now his performance will be appraised in light of some real failure.
Seeing a far worse electrical emergency elsewhere does put in perspective
what we went through, and that we licked it in a fairly short period of time."
He noted that California officials had predicted 200 days of blackouts,
"and we haven't had any."Mr. Freeman said that the latest blackout
"puts this whole deregulation phenomenon on trial."

"What's lacking in this deregulated world is someone to take responsibility," he said.
No one is responsible for beefing up the system or building
power plants. We're talking about the lifeblood of our economy, and there
has to be a sense of legal responsibility for keeping the lights on, and
that's what we lost with deregulation."

At the national level, some political consultants cautioned against seeking
political advantage from the blackout before its cause was determined.
"The Democrats, if they try to turn this into a political issue against
President Bush, will just look absolutely desperate, like they're flailing at
anything that moves," said Whit Ayres, a Republican pollster.
"Let's go out and spout off and take some political shots before we have any idea
where the fault lies."

But most of the Democratic presidential candidates were undeterred.
Howard Dean, the former governor of Vermont, claimed credit for saving New
England from disaster and argued that the administration was going in
the wrong direction by trying to expand the national grid.

"I think they should stop trying to link every bit of the grid together,"
Dr. Dean said in Iowa. "I stopped New York, Vermont and New England from
linking up by threatening to sue, and they rethought it. If that had happened,
New England would have gone out last night. The idea that bigger is
better and that we need a national grid is just foolish."

Senator Joseph I. Lieberman of Connecticut
asked the Department
of Homeland Security to assess the vulnerability of key electric infrastructures
and devise a plan to protect them from attack. He also asked the Federal
Energy Regulatory Commission to probe the causes of the blackout.

"It is disconcerting that the president would describe yesterday's events
as a `wakeup call,' " Mr. Lieberman said in a statement. "The reality is
that the administration has simply failed to provide the leadership or
resources necessary to ensure that our critical infrastructure is adequately
protected."

Representative Richard A. Gephardt of Missouri called the blackout
"further evidence that the Bush administration is inexorably tied to Persian
Gulf oil and old energy, and is incapable of devising a comprehensive,
forward-looking energy strategy."

Senator Bob Graham of Florida
tied the overburdened grid to
Mr. Bush's tax policy. "His $900 billion in tax giveaways to the richest Americans have
left America without the resources to rebuild this nation's infrastructure,"
Mr. Graham said in a telephone interview.

As Republican leaders in Congress said that environmentalists and Democrats
had blocked the improvements to the nation's power grid,
conservative talk radio hosts amplified their message.

"We've got to set the record straight," said Sean Hannity on his syndicated
program yesterday. "What party is it that is opposing all attempts for us
to move toward energy self-sufficiency? What party is it that refuses
to allow us to drill in the second-largest oil field in American history, known
as ANWR, which is a vast wilderness?"

What seemed clear as the day wore on was that millions of
Americans - and in particular, their leaders - would become newly sensitized to the
politics of energy infrastructure.

"There may have been an elected official who has been arguing for
improvements in the grid, or warning of danger ahead," said Howard Wolfson, a
Democratic strategist in New York. "Before yesterday no one would
have known or cared. Tomorrow, I can guarantee you, they will."

nytimes.com
Copyright 2003 The New York Times Company



To: Mephisto who wrote (7301)8/19/2003 8:25:22 AM
From: Mephisto  Respond to of 15516
 
The Road to Ruin
August 19, 2003
The New York Times

OP-ED COLUMNIST

By PAUL KRUGMAN

We still don't know what started the chain reaction on Thursday.
Whatever the initial cause, however, the current guess is that a local event
turned into an epic blackout because the transmission network has been neglected.
That is, the power industry hasn't spent enough on the
control systems and safeguards that are supposed to prevent such things.

And the cause of that neglect is faith-based deregulation.


In the past, electric power was considered a natural monopoly. It was
and is impractical to have companies competing either to wire up homes and
businesses, or to build long-distance transmission lines. Because effective
competition was impossible, power companies were given local
monopolies, and regulated to keep them from exploiting customers.

These regulated monopolies took responsibility for the
whole system - transmission and distribution as well as generation. Then came the
deregulation movement. It argued that a competitive market could be
created in power generation (though not in transmission and distribution),
and in much of the country utilities were forced to sell off their power plants.

In fact, effective competition has been elusive even in power generation.
In California, deregulation led to one of history's great policy disasters:
energy companies drove up prices by creating artificial shortages.
This plunged the state into a crisis that ended only after much of its electricity
supply was locked up in long-term contracts, and price controls were imposed on the rest.

Incidentally, there seems to be a weird reluctance to face up to
what happened in California. Since the blackout, I've seen national news reports
attributing California's woes in part to environmental restrictions,
while ignoring the role of market manipulation. Huh? There's no evidence that
environmental restrictions played any role; meanwhile, even the
Federal Energy Regulatory Commission, which strongly backs deregulation, has
concluded that market manipulation played a major role.
What's with the revisionist history?


Anyway, market manipulation aside, energy experts have long warned
that deregulation would lead to neglect of the grid. Under the old regulatory
system, power companies had strong incentives to ensure the integrity
of power transmission - they would catch the flak if something went wrong.
But those incentives went away with deregulation: because effective competition
in transmission wasn't possible, the companies providing
transmission still had to be regulated. But because regulation
limited their profits, they had little financial incentive to invest in maintaining and
upgrading the system. And because of deregulation elsewhere,
responsibility was diffused: nobody had a strong stake in keeping the system
reliable. The result was a failure not just to add capacity, but to maintain
and upgrade capacity that already existed.

These experts didn't necessarily oppose deregulation; their point
was that deregulation could lead to disaster unless accompanied by policies not
just to keep the grid reliable, but to expand it. (To make competition possible,
a deregulated system needs considerably more transmission capacity
than one based on regulated monopolies.) But their warnings weren't
taken seriously; politicians and deregulation enthusiasts simply had faith
that somehow "the market" would take care of the problem.

Four years ago, Paul Joskow of M.I.T. told FERC: "Proceeding on the
assumption that, at the present time, `the market' will provide needed network
transmission enhancements is the road to ruin." And so it was.

Have we learned our lesson? Early indications are not promising.
President Bush now says that "our grid needs to be modernized . . . and I've said
so all along." But two years ago Tom DeLay blocked a modest
Democratic plan for loan guarantees for system upgrades, calling it "pure
demagoguery." And press reports say that despite the blackout,
the administration will bow to pressure from Senate Republicans and put on ice the
only part of its energy plan that had any relevance to the blackout,
a FERC proposal for expanded oversight of the transmission system.


This nation needs to invest billions in its power grid, yet given recent history,
it's crucial that this investment not be simply another occasion for
energy-industry profiteering. Somehow, I'm not optimistic.

nytimes.com

Copyright 2003 The New York Times Company



To: Mephisto who wrote (7301)8/26/2003 3:50:03 AM
From: Mephisto  Respond to of 15516
 
FirstEnergy Woes

tompaine.com

Wenonah Hauter is Director of the Critical Mass Energy and Environment Program at Public Citizen.

On mid-day Thursday, Aug. 14, a coal-fired power plant in northeastern
Ohio stopped running. In response, FirstEnergy, which owns the
plant, began to pull 20 percent of its electricity load out of Michigan.
This transfer overloaded several transmission lines, causing them to
trip. Non-FirstEnergy plants in Ontario, Canada, began supplying energy
to the underpowered Michigan market, leading to an overload on
those transmission lines. This movement of power in Canada sapped
New York of power, within hours leading to the largest blackout in
U.S. history.

Electricity deregulation was the catalyst, but FirstEnergy was the
immediate culprit for the massive power blackout that shut down much of
the Midwest and Northeast last week. FirstEnergy delivers electricity
to more than 4 million people in Ohio, Pennsylvania and New Jersey.

Although industry analysts blame the Ohio-based energy conglomerate
for the power outage, the Bush administration is silent.

FirstEnergy's strong ties to the president helps to explain why the
Department of Energy (DOE) may downplay the company's role in the
blackout.

Why Bush Won't Blame FirstEnergy

Energy Secretary Spencer Abraham thinks consumers should
cough up the $50 billion needed to upgrade the strained transmission
system. "Ratepayers," Abraham told CBS's Face the Nation,"will pay
the bill because they're the ones who benefit."

FirstEnergy started the problem, why shouldn't the company
be held responsible? Because the Bush administration wants to absolve
corporate America from responsibility.


And thanks to its cozy relationship with President Bush, FirstEnergy may get
a free pass. The company is a big donor to the White House. In
June, the company's CEO hosted a fundraiser that brought in
$600,000 for the Bush-Cheney re-election campaign. Another FirstEnergy
executive, president Anthony J. Alexander, gained distinction
in 2000 by raising $100,000 for the Bush-Cheney campaign and personally
donating another $100,000. When Bush took office, Alexander was
included on the Energy Department's transition team.


In the electricity utility industry, FirstEnergy's PAC and its top executives are the
sixth-largest contributors to political campaigns, giving more than $1 million
to federal candidates in 2001-2002, with 70 percent of the money
going to Republicans. FirstEnergy wields enormous lobbying influence in
Congress as well. In 2001-2002, the company spent nearly $3.8 million
lobbying Congress and the Bush administration.

FirstEnergy, Deregulation and the Bush Administration


FirstEnergy may have spurred the power outage, but deregulation
deserves the overall blame. Long before the August blackout, the Bush
administration pursued a policy of energy deregulation, and now that policy
has come back to haunt us.

Bush's energy deregulation makes America vulnerable for two reasons.


First, the United States' transmission system was designed to
accommodate local electricity markets. Under deregulation,
however, companies trade electricity and move power over much longer
distances and wider areas. This freewheeling approach to sending
power strains a transmission system designed to serve local utilities.

Second, deregulation leads to inadequate investment in infrastructure.
Deregulation at the state level means that utilities are no longer
required to reinvest ratepayer money back into the transmission system,
as this orderly planning has been replaced with reliance on "the
market." But the market has been unwilling to make the necessary investments in transmission.

In particular, the market has not functioned properly since lawmakers punched loopholes in the federal law intended to protect electricity consumers. Now, the Public
Utility Holding Company Act(PUHCA) faces the likelihood of
full repeal by Republicans in Congress. PUHCA
regulates giant energy companies by requiring them to disclose
crucial financial details and limiting the types of non-electricity investments
they may make. If PUHCA is repealed, a wave of mergers will likely
result, leaving a handful of companies (like Southern Co., ExxonMobil
and FirstEnergy) in control of our electricity -- with no effective regulators
looking over their shoulders.


In the case of the August blackouts, the deregulated wholesale markets
of the Midwest and Northeast -- typically cited as models for
national deregulation by the Federal Energy Regulatory
Commission (FERC) -- failed in their ability to provide reliable and affordable power.
As a result, wholesale prices remain higher than under regulation,
and nearly 96 percent of the 40 million residential consumers in the
remaining 15 deregulated states lack access to competitive electricity suppliers.

This is the world of energy the Bush administration and its financial supporters envisioned.
Of course, no one wanted a regional blackout.
But no one was there to prevent it, either.


Published: Aug 22 2003



To: Mephisto who wrote (7301)9/4/2003 6:39:46 PM
From: Mephisto  Respond to of 15516
 
Message 19273189