posted on May 30, 2001 05:13:48 AM new
This article lays out as succinctly as anything I've seen the progression as well as the players which has brought about the energy situation in California.
Though it's in place here now, there isn't much other than the power of the vote to keep the same game from being worked in every state of the union.
It is a game, a deliberate manipulation, fausted upon voters through deception on the part of energy suppliers led by one large texan conglomerate (BIG contributor to guess who) and driven by a previous governor's political aspirations.
It goes like this:
"Tucked into a leafy office park in Folsom, the ISO consists of a labyrinth of hallways and meeting rooms. Ground zero is a
15,000-square-foot control room with a giant map board curving across one wall that charts the flow of electrons around the state.
In the foreground, somber-looking people sit in front of computers, talking on telephones. Their job is to buy enough power to keep
California's needs met. On July 9, 1998, the price for reserve power needed by the ISO was running at $1 a megawatt hour and was being tracked on computer screens in the market operations department of the agency."
"A staffer hurried up to ISO chief executive Jeffrey Tranen with a note. The $1 price tag, set by the power generators, had shot up to
$2,500. Then, just as suddenly, it spiked again to $5,000, where it stayed for three hours. After that, it mysteriously dropped again, all the way back to $1. Four days later it happened again, but this time the price went to $9,999 and stayed there for four hours. Then it dropped to a penny. "All of us saw those numbers and realized ... there was nothing to stop someone from bidding infinity," said Tranen, now a software executive."
"Under the rules, the identities of power generators are kept secret. But Levin, the New York businessman who'd warned of higher
prices back in 1994, said the price spikes were clear signs of someone probing for weak spots. "They were experimenting from Year One," he said. "Early on, people learned how to work the magic."
The ISO saw the problem, too, and moved to cap prices. But it was clear that California markets were vulnerable to manipulation.
The damage was done, and the gold rush was on."
Yesterday Bush was here in California. He steadfastly refused to do the only possible thing which can put a stop to the game in California. He issued his usual mumbo-jumbo, but it's clear to most everyone that his interests lie with the power companies and seeing to it that they are enabled anew to continue to play this on California, and eventually, inevitably, on the rest of the country.
posted on May 30, 2001 06:17:01 AM new
California has blocked the construction on new power plants mainly due to the NIMB* movement. While I do understand the thinking, there comes a time when a price must be paid. California has given virtual veto power to local communities, allowing them to block construction for years. Since 1996, private firms have proposed building 11,000 megawatts of new capacity, twice as much as is needed to meet demand. None have received approval.The Energy Crisis for Dummies
posted on May 30, 2001 06:51:45 AM new
uaru,
That's an oversimplification. There are nuclear power generating plants here, and one of them near Sacramento came close to duplicating Three Mile Island. With the state of the afforded technology no one in their right mind would give blanket approvals for the construction and use of those things, despite all of the well meaning assurances from people who are not here.
Even if other power sources were proposed for use, they are regulated, even restricted from use under current law. Even the in place great wind generators stand idle most of the time because that is a source which does not fall under the purvue of approved suppliers.
Taking from your own article: "Will there be dark nights in Nebraska? The rest of the country shouldn't have serious
problems in the next few years, though the shortage of water in the Northwest will
almost certainly cause higher prices there. The total demand for power in the U.S. is
expected to rise by 60,500 megawatts from 2000 to 2004, according to the North
American Electric Reliability Council. Proposed new plants would add two to three
times that much capacity. However, the council says that inadequate transmission
lines between regions make it difficult to move power to where it is needed, say, in a
heat wave. The proliferation of privately owned generators, whose owners are eager to
ship power to wherever they can get the best price, is adding to the strain. "The
transmission system is being subjected to flows in magnitudes and directions that
were not contemplated when it was designed," says an NERC assessment. James E.
Rogers, CEO of Cinergy, a Cincinnati utility, believes the federal government should
create a national power grid".
So despite your propensity to giggle at others it all will come to you as well soon enough. Do you really think that the problem of energy supplies in this country can be localized and blamed on anyone except those primarily republican interest who could care less about you and I or your state or mine?
Mr. Davis emerged from the meeting to
declare, "I'm going to pursue every recourse
available to me" to force the Federal Energy
Regulatory Commission to order rebates to
consumers or a lowering of prices.
But he expressed gratitude that [b]Mr. Bush had
agreed to look into the question of why Texas
natural gas suppliers were charging for gas
transported to California about three times
what they were charging for gas transported
to New York,[/b] and to review whether to
re-impose tariffs, suspended two years ago,
on such transmissions.
posted on May 30, 2001 07:09:18 AM new
krs, the proposed power plants weren't nuclear power plants. I doubt you'll see another nuclear powerplant built in the US in your lifetime. It takes about 18 years to get the permits to begin construction, another 12 years to bring it online. So you're looking at 30 years from the idea until electricity is produced. This is from memory, you can check if my numbers are in the ballpark. As far as I know there are no nuclear power plants even in the idea stage anywhere in the US.
posted on May 30, 2001 07:28:23 AM new
There should be, in bleak sparsely populated places like Texas.
Personally I think nuclear plants are the way to go, but they can't be built or run by private interests. The number of illegal cost cutting measures at our own Diablo plant were pretty horrendous considering the possible result. Yet our nuke boats run around the world with only occasional problems, and one carrier could supply the electrical needs of the state of California if it were configured to do so.
posted on May 30, 2001 07:28:40 AM newSo despite your propensity to giggle at others
Excuse me but there were no smiley faces or snide remarks in my post. The link was given the same title as the article it had at the Fortune web site.
I'm sure there will be a lot of fingerpointing and finding someone to take the blame but the blocking of construction on these proposed power plants is viewed by many as the key to the problem. Unfortunately you don't build these powerplants or install these transmission lines overnight. Hopefully the problems in California will get the rest of the country a wakeup call on their future needs.
The idea of capping the prices will do nothing to encourage the construction of new plants and transmission lines that are desperately needed, they will in fact discourage the new constructions.
posted on May 30, 2001 07:33:10 AM newPersonally I think nuclear plants are the way to go
You may be right, I don't know. I do know that if you try and construct one in the middle of Wyoming you are due many, many, years of studies, court battles, and a negative image that has to be fought. When a company has to invest such a large amount time and energy just to get to the construction phase it makes it unrealistic. Like I said I doubt you'll ever see another nuclear plant built in your lifetime, I know I won't.
posted on May 30, 2001 07:40:27 AM newThe idea of capping the prices will do nothing to encourage the construction of new plants and transmission lines that are desperately needed, they will in fact discourage the new constructions.
Not true. No one is proposing a cap at unrealistic levels that I've seen. Price caps would be placed only to prevent the gross profit taking that is apparently going on right now and is the cause of this shortage situation.
I thought that the descriptions of the price wanderings taken from staff at the energy marketting center at Folsom were revealing. The deregulation plan was forwarded and passed with the evident intent of enabling suppliers to squeeze more dollars out of the state's consumers.
As related in the article posted, this is not what was promised to be. Prices would be lower overall, and consumers would be free to chose their own supplier according to their needs, the price, or even personal preference. What has come of it is that dumbya's cronies are scamming this state now and others later out of billions of dollars a day.
posted on May 30, 2001 07:53:33 AM newThe idea of capping the prices will do nothing to encourage the construction of new plants and transmission lines that are desperately needed, they will in fact discourage the new constructions.
uaru, you've been listening to Dick Cheney again! All you have to do is go and look at the posted profits for the last year for the big energy companies. Obscenely high posted profits, all on the backs of Californians. Why do you think they wanted to get their hands on our generators so badly?
posted on May 30, 2001 08:39:22 AM new
What I have failed to understand all this time is: How can ridiculously high energy cost do ANYTHING about increasing power supply?.. If there is no supply, at $1.00, then there still AINT no supply at $25,ooo... ZERO TIMES XXXXXX = ZERO. That makes it so very obvious that this is nothing but manipulation...
We may be "dummies", but the rest of 'Merica should not be so ready to ridicule us....
As to Nuc Energy, no, we would prefer to NOT have it in our backyard...Would the rest of 'Merica????? Please, will all the volunteers stand up???
NPR News was saying (about 3 weeks ago), that bushytail wanted to have all Nuc Plants, which have been inactive for about 40 years, to be re-vamped, and re-activated....He had chosen one of his (slightly) more articulate cronies to assure California that those old power plants were absolutely safe...
Can't help but giggle at that... We are talking SIEVE here...
As to Governor Davis, he focussed too much on the Glory of the day, the being catapulted into the Limelight, and not enough on the problem...He will pay the price. Yes, there ARE weak links in the Democratic fishnet..
posted on May 30, 2001 08:48:28 AM new
While Californians have suffered the most due to the rolling blackouts, the energy crisis has already visited itself on all Americans.
Gasoline prices have been high for well over a year now.
Natural gas prices are up all over the country. Here in Georgia, our natural gas bills have tripled over those paid a year ago.
posted on May 30, 2001 09:36:06 AM newNatural gas prices are up all over the country. Here in Georgia, our natural gas bills have tripled over those paid a year ago.
Speaking of natural gas prices and connections to Bush "Texas" cronies...
What a bunch of outrageous crooks, not only well connected to Bush and the Republican Party but interconnected to produce manipulation of gas and subsequently electricity prices on an awesome scale!
posted on May 30, 2001 01:31:45 PM new
The strangest part of the crisis to me is that through conservation California was using slightly less energy than in the previous years. So there was no increase in demand and therefore the same number of plants providing power then, logically could provide the same or less amount of power in the following year. That is unless someone cuts supply. But who could do that in a free market? That would only work if the company heads were smart enough to duplicate how the oil companies collaborate.
Additionally, I think George Bush is thumbing his nose at California because the surrounding states are making millions of dollars off this situation, and he could not win California’s votes for reelection no matter what he does? This is something important to consider.
Everyone in the country should be scared over his lack of action so far because California produces 20% or so of the GDP. What effect do you think this will have on all the products that we make down here? You know it will hit all the states as it is passed on to the consumers in produce, electronics, entertainment, etc. I work for a medium sized Transportation Company and we are already passing on a fuel surcharge. Today we had a meeting on how we could pass on the energy charge as well. Short-term Fair Market Caps should have been George’s answer until we can start producing our own electricity again. This error in his judgment will hurt the country without a doubt. But then one would guess from his actions that he knows he's just a one termer.
Oh well, don't get angry when Californians can't donate to any disaster relief funds that come up this year.
posted on May 30, 2001 04:39:56 PM new
I've heard all the news on California, and the blackouts and the increase prices.
Up here in WA, they are raising the cost of the grid next month, then another increase a couple months from there.
There was an article in The Seattle Times not too long ago, about how they are predicting blackouts starting in November and on. That is when we need it, for heat, just like CA needs AC (I KNOW how hot it is in S. CA )
There should be, in bleak sparsely populated places like Texas.
This is exactly the kind of thinking that got California into the mess they are in now.
Texas and most of the southwest and south are not having an problem. Texas has the gas and oil to power their plants and they have kept pace building plants to meet demand.
The south has several nuclear power plants and has kept pace with demand by building lots of dams and small coal fired plants.
Now you are whining that you want us to take the risks for the environment in our state so you can keep you perfect little state just like you want it.
I don't care if you are hot, cold, or in the dark; if you want power build some power plants in your state or pay up
It can't be MY "fault", I've NEVER owned a "fault"!
posted on May 31, 2001 10:48:58 AM new
Oh gosh. Took the time to take offense and direct your ire at me? Incredibly sweet of you.
I don't know why you feel compelled to call my simple little exposition whining, for I'm perfectly willing and capable to "pay up", as you put it, to keep California from ever becoming the sort of wasteland that Texas allows itself to be for the sake of the few rich manipulators who hold the worship and love of the rest of the populace of the state. What an unfair characterization of me personally!
As to the location of the plants of destructive potential I do maintain that they ought to be located in any place which could only be thought of as a small loss should ever they become little more than a huge glowing hole on what can be called the bottom of the country's landscape.
Do keep your truck fueled up , tires full of air so that you'll be ready to pick up and haul your trailer out of there when the inevitable meltdown comes won't you?
I now understand, that anyone who does not agree with your wonderfully wise view of the world, must live in a trailer and drive a pick-up. Really intelligent point of view there as well.
Now as to being a gaping hole, California is scheduled by the natural environment you are so concerned about to fill that bill, of course, yours won't glow (no power).
It can't be MY "fault", I've NEVER owned a "fault"!
[ edited by JMHO on May 31, 2001 11:51 AM ]
posted on May 31, 2001 12:04:38 PM new"I now understand, that anyone who does not agree with your wonderfully wise view of the world, must live in a trailer and drive a pick-up"
Gee, could someone point out for me where I said THAT? How in the world could I ever conclude THAT, never knowingly having spoken enough to anyone who lives as described?
Have I so spoken? My goodness! Do you think that I should immediately wash my hands?
posted on May 31, 2001 12:15:37 PM new
I found this article a bit interesting. It seems there are some that think California has some responsibility for the situation. I can see how and why Davis would rather the problem be one from Texas, and I'm sure he'll be able to sell that idea to some (he already has.) Get Out Of California
Rather than level with individual energy consumers, Davis is determined to distract and demagogue the issue and whip up a populist frenzy against the energy companies - especially the Texas ones - about "price gouging." He has also recently hired two character assassins from the Clinton White House to run his public relations operation. Davis is determined to emerge from this fiasco as the people's choice, perhaps strong enough for a shot at the White House.
Do keep your truck fueled up , tires full of air so that you'll be ready to pick up and haul your trailer out of there when the inevitable meltdown comes won't you?
This was posted less than 2 hours ago! Having memory problems?
It can't be MY "fault", I've NEVER owned a "fault"!
posted on May 31, 2001 12:19:21 PM new
Well actually krs, you did say that..... but I said mobile home because it seems to be the political correct thingy to say hehe
And I am sitting down, and if truth be known.... (sorry anyone in OK!!!) but I could give a rats ass about OK, and if it blew away today, I may be happy I have my own personal reasons for that one.
We are talking SIEVE here...