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Issue #1:
Date: Mon, 05 Feb 2001
Subject: BAILOUT WATCH Issue 1
From: Ratepayer Revolt
BAILOUT WATCH Issue 1 BAILOUT WATCH:
Keeping an eye on the energy industry and the politicians
ISSUE 1 FEBRUARY 5, 2001
CONTACT: DOUG HELLER 310-392-0522 XT .309
Last time, no one was watching. This time, the whole world is watching. Last time, state legislators bought the ideology that a free market in electricity would lower rates. (Or maybe, the ideologues simply bought the lawmakers). This time, the politicians are looking for a way out of the ideological box. Last time, to get deregulation, ratepayers had to pay off the bad debts of the utilities. This time, to rescue the utilities from deregulation, we have to pay off the bad debts of the utilities. Two weeks ago, Gov. Davis got authority to spend $800 million of taxpayer¹ money to keep the lights on ‹ now it¹s nearly gone. Last week, the taxpayers got into the business of buying electricity for the private utility companies. This week, legislation to pay off billions of dollars of the utilities¹ inflated losses will be pushed by the utilities and Wall Street. A rip off this big deserves its own daily newsletter. Harvey Rosenfield
Audits: utilities don¹t deserve bailout. The PUC audits of Edison and PG&E confirm our claim that the utility companies exacerbated their present financial woes by siphoning off billions from ratepayers, then paying dividends and going on an international spending spree. When the market turned, the utilities mismanaged their power purchases and failed to cut their expenses -- and are now inflating their recent losses by over 45%.. A good summary by TURN of the audits can be found on our website. A plan under which Edison can sell its non-essential assets to bail itself out is also available.
Gas companies plot price-fixing. Deregulation of electricity is shaping up to be a more expensive disaster than deregulation of savings and loans, another brilliant idea pioneered by the California Legislature in the early 1980s. It ultimately cost taxpayers $300 billion. But yesterday¹s Los Angeles Times reveals how deregulation of natural gas by the federal government under Bush and Clinton has empowered the energy companies to manipulate gas prices by controlling the movement of gas through interstate pipelines and dramatically increase the price of gas when it crosses the Arizona-California border.
A ³voter proof² bailout? Guess what: the utility companies want to prevent California voters from reversing a legislative bailout at the ballot box. Even though the California Constitution reserves for the People the right of initiative and referendum, lawmakers are planning to insert language into the bailout legislation which will preclude voters from challenging such laws through direct democracy. FTCR will seek to invalidate any such legislation in the courts.
FTCR is a non-profit, non-partisan advocacy organization. For in-depth information on the utility deregulation disaster, to join the campaign to fight the bailout, or to comment, visit our web site at www. ratepayerrevolt.org.
1750 Ocean Park Bl., Suite 200
Santa Monica, CA 90405
http://www.consumerwatchdog.org
--
If you do not wish to receive e-mail from Ratepayer Revolt in the future, reply to this message and type the word "unsubscribe" in the subject field.
Issue #1:
Date: Mon, 05 Feb 2001
Subject: BAILOUT WATCH Issue 1
From: Ratepayer Revolt
BAILOUT WATCH Issue 1 BAILOUT WATCH:
Keeping an eye on the energy industry and the politicians
ISSUE 1 FEBRUARY 5, 2001
CONTACT: DOUG HELLER 310-392-0522 XT .309
Last time, no one was watching. This time, the whole world is watching. Last time, state legislators bought the ideology that a free market in electricity would lower rates. (Or maybe, the ideologues simply bought the lawmakers). This time, the politicians are looking for a way out of the ideological box. Last time, to get deregulation, ratepayers had to pay off the bad debts of the utilities. This time, to rescue the utilities from deregulation, we have to pay off the bad debts of the utilities. Two weeks ago, Gov. Davis got authority to spend $800 million of taxpayer¹ money to keep the lights on ‹ now it¹s nearly gone. Last week, the taxpayers got into the business of buying electricity for the private utility companies. This week, legislation to pay off billions of dollars of the utilities¹ inflated losses will be pushed by the utilities and Wall Street. A rip off this big deserves its own daily newsletter. Harvey Rosenfield
Audits: utilities don¹t deserve bailout. The PUC audits of Edison and PG&E confirm our claim that the utility companies exacerbated their present financial woes by siphoning off billions from ratepayers, then paying dividends and going on an international spending spree. When the market turned, the utilities mismanaged their power purchases and failed to cut their expenses -- and are now inflating their recent losses by over 45%.. A good summary by TURN of the audits can be found on our website. A plan under which Edison can sell its non-essential assets to bail itself out is also available.
Gas companies plot price-fixing. Deregulation of electricity is shaping up to be a more expensive disaster than deregulation of savings and loans, another brilliant idea pioneered by the California Legislature in the early 1980s. It ultimately cost taxpayers $300 billion. But yesterday¹s Los Angeles Times reveals how deregulation of natural gas by the federal government under Bush and Clinton has empowered the energy companies to manipulate gas prices by controlling the movement of gas through interstate pipelines and dramatically increase the price of gas when it crosses the Arizona-California border.
A ³voter proof² bailout? Guess what: the utility companies want to prevent California voters from reversing a legislative bailout at the ballot box. Even though the California Constitution reserves for the People the right of initiative and referendum, lawmakers are planning to insert language into the bailout legislation which will preclude voters from challenging such laws through direct democracy. FTCR will seek to invalidate any such legislation in the courts.
FTCR is a non-profit, non-partisan advocacy organization. For in-depth information on the utility deregulation disaster, to join the campaign to fight the bailout, or to comment, visit our web site at www. ratepayerrevolt.org.
1750 Ocean Park Bl., Suite 200
Santa Monica, CA 90405
http://www.consumerwatchdog.org
--
If you do not wish to receive e-mail from Ratepayer Revolt in the future, reply to this message and type the word "unsubscribe" in the subject field.
For more information:
http://www.ratepayerrevolt.org/utilities/
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For years the PUC has been in the pocket of the utilities
business. What would they do if a majority of California's
citizens decided to pull the plug on PG&E?
I do not dare make the assumption that this will occur.
However, collectively we are a sleeping giant,...aren't we?
Let's define the hardship of such a move. It would mean
an extra sweater on cold evenings....the purchase of
kerosene lamps for reading at night....No TV to interrupt the pleasure of a good book...buying only the food you would eat for the day....the cozy interaction of family and a cheery fire on the hearth...are we really that far in real time from the normalcy of such a lifestyle? I think not.
If you find pleasure in this picture, write me at jtroach [at] hotmail.com....we just might begin a groundswell!!