The Worst Wing: An Electric Coup d'Etat

California Energy Markets ^ | August 9, 2002 | Arthur O'Donnell

[Robert357]

Previously on "The Worst Wing":

Steve Imbroglio, press secretary to the Governor of California, sips coffee while staring at a graph on his computer screen. He calls out to his assistant, Wanda Bee, "I've been debating whether to spend my tax refund on a new DVD home-theater system or to make an investment in California's future." ---snip--- "I was thinking of buying 100 shares of Pine Cone Corp. Don't you think that would be sending a message of support for home-grown electric power companies in opposition to the out-of-state gougers?"

"I think it might be a conflict of interest." ---snip--- "At 10 am, you've got the Governor throwing the switch at the new Pine Cone power plant in Butt County. There will be fifty reporters and TV crews on hand for the photo op. Maybe you should call in sick. We can pretend you didn't have anything to do with scheduling this one."

Act One: The lights of the state Capitol Building burn late into these summer nights, not just to follow the conservation campaign's dictate of postponing energy-consuming tasks to off-peak hours but illuminating the heavy load of unfinished business confronting Governor Davis Gravus and his staff. In the midst of a hard-fought re-election battle, the governor's team is trying to prod the Legislature into passing a budget-already two months late and $25 billion in the red.

At the same time, internal conflict among the Governor's appointees on the Public Service Commission has repeatedly delayed issuance of $10 billion in bonds to reimburse the state for power purchases and contracts made during the electricity crisis. The Federal Energy Regulatory Commission is set to issue a sweeping body of rules affecting national wholesale power markets, including California's, and it has already ordered the state to disband the board of the Independent Grid Operator that was appointed by Gravus during the emergency. Legal adviser Justin "Just" Gudinov is reviewing the possible response.

"We have to take the position that the IGO is a state-created entity and that FERC has no authority over it," Gudinov says.

Attorney General Will Lockhorn agrees. "I'll issue an advisory to the board to disregard the FERC order. I will uphold and enforce existing state laws."

Gravus nods. "We'll show those A-holes."

"What about the Supreme Court?" interjects political advisor Cary West. "Didn't they uphold FERC jurisdiction over IGOs last March? They specifically rejected the same arguments you made then."

Lockhorn glares at his nemesis. "It's a different issue. State sovereignty is at stake."

"Yeah," West mumbles audibly. "We tried that in the filed-rate doctrine case. See where that got us."

A knock on the door. Imbroglio enters and puts a $50 bill into a jar on the table marked "staff campaign contributions."

"Governor, I'm sorry to interrupt, and I know I still owe you two payments for the last unscheduled meetings, but you guys should really tune into the floor budget debates. I don't think you want to miss Peas' filibuster."

The governor curses. "What is that A-hole up to this time?"

Act Two: State Senator Warren Peas loosens his tie in a dramatic gesture, indicating it's going to be a long speech. "The Federal Energy Regulatory Commission is declaring war against California and we must respond in kind. It's a civil war, make no mistake. Do you think it's a coincidence that the federal regulators are all from Texas, Pennsylvania and other Southern states? They have it in for California..."

Peas continues unabated. "Well, this time, we're the Confederacy. A confederacy of good against evil. ---snip--- We won't let them. That's why I'm sponsoring this budget amendment to effect a complete state takeover of the electric transmission and generation system, to use our powers of eminent domain to protect ourselves against the gougers and the manipulators that have us up against the wall of high prices and repeatedly force us into making bad decisions."

The room erupts in chaos and chatter. "We're already $25 billion in the hole," pleads Senator Hugh Dunnet from IOU County. "We've tripled the taxes on cigarettes and beer; we've halved essential services and mortgaged the future with junk bonds. How are we going to pay for this?"

Peas retorts, "Don't worry. We have a plan that will finance this and fix the budget deficit."

Act Three: Secretary of state Phit Altheangles and controller Kathy O'Contrary are in a screaming match in the second floor hallway. "We DO NOT have the authority to print our own currency," she yells.

"It's not currency," he counters. "They're bonds, just like war bonds. We're asking average Californians to make an investment in the future security of the state and the reliability of the electric system by purchasing the transmission grid and power plants."

She grabs a cardboard chart from his hands. "Look at this. You've got certificates called 'Davis Dollars' with the Governor's picture on them! You want to sell $50 billion of these. That's $1,475 from every single Californian. How can you say that's not issuing money?"

"It's not money because they're not worth anything, and they're not backed by the full faith and credit of the state," he responds. "Don't you know anything about public finance?"

[Robert357]

To paraphrase some old TV Dragnet humor, only the names have been changed to protect the guilty.

OK, I am sorry I missed this about a month ago when it first came out. Clearing Up and News Data Corp, which also publishes California Energy Markets (CEM), is a very sophisticated group of energy journalists who can spot "spin" a mile away and tell the energy industry the "true" story about many topics. This trade journal has a near cult following among members of the West Coast Energy industry.

I though that some of you might enjoy the humor and sarcasm in the article.

[Robert357]

I thought you folks could use some humor, so I posted the following article. Again, the names have been changed (but not by much) to protect the guilty. Ah, yes the California Energy Crisis......

[Robert357]

P.S. Anybody catch the restricted generation maintenance notice on the Cal ISO today?

Cal ISO System Status

The California ISO is declaring GENERATION Restricted Maintenance Operations for the period from 09/03/2002 06:00 through 09/03/2002 21:59.

The ISO anticipates generation resources may be inadequate for the period covered by this notice.

Restrictions to maintenance affecting Generation as detailed in ISO Operating Procedure E-509 will be in effect. A8dditionally, Market Participants are cautioned to avoid actions which may unnecessarily jeopardize generator availability.

[SierraWasp]

Oh... This is classic!!! And so funny, too!!! Thanks.

[Dog Gone]

Oh man, this was too good. Only California political junkies will see the outstanding humor in this piece, but it was brilliant! Thanks!

[Ernest_at_the_Beach]

Thanks for the Humor!!!!

Running late tonight!

calgov2002:

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[Ernest_at_the_Beach]

ROFLMAO!!!!!!!

Outstanding!

Calpowercrisis:

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[okie01]

Wonder what it would cost the Republicans to a.) buy the script, b.) sell advertising and c.) produce this as a prime time TV special in California.

The ratings, and the entertainment value, would be through the roof...

P.S. I'm more than half serious...

[snopercod]

Hilarious! The stage names are superb.

[snopercod]

Another one today. What gives? Usually Path 26 reaches capacity limits when they have a heat wave in Southern CA. The Wx there looks mild today. Forest Fire?

   Restricted Maintenance Operations [200201349]

   Due to Path 26 trouble.

   The California ISO is declaring Restricted Maintenance Operations for the period
   from 09/04/2002 05:00 through 09/04/2002 17:59.

   Restricted maintenance operations, as detailed in ISO Operating Procedure
   E-509, will be in effect.

   Market participants are cautioned to avoid actions, which may
   unnecessarily jeopardize generator availability.

   This message is from Market Operations at the California ISO.

   This notice supersedes notice 200201347

   Notice issued at: 09/04/2002 01:59

[Robert357]

...The ratings, and the entertainment value, would be through the roof...

Yes, but think of the lawsuits from the Democratic Party-West Wing producer, from the various people whose names are thinly disquised, .....

However, purchasing the article from NewData Corp and running it as an ad in a newspaper and then putting in some commentary about how Gov Davis and his democratic party cronies have made California a laughing stock of the country,.....well that is another matter.

[Robert357]

The stage names are superb.

I liked them also. From Controller O'Contrary, to Attorney General Lockhorn, to the Gov, all the names evoked a sense of who these people are and where they are coming from. The Clearing Up/California Energy Market folks really know the scene they write about (most of the time.)

[okie01]

"Yes, but think of the lawsuits from the Democratic Party-West Wing producer, from the various people whose names are thinly disquised, ....."

It's political speech. And a parody. There are protections...

It won't get done, of course. But I believe it could be done.

[Robert357]

Yes, you are correct the cause was a forest fire. You are getting the hang of this quite well. The following is from the WECC Daily Report, which tells the world the big things that are happening in the West that impact electric reliability. I hope Gov. Davis feels lucky!

"On Sunday, 9/1/2002 from 1442 to 1502, CISO Spinning Reserve declined to 760 MW's (2.08%) when CISO utilized contingency reserve to mitigate overloaded COI (Path 66) after Captain Jack-Olinda 500-kV line relayed due to a fire burning under the line.

On Sunday CISO issued a 'warning' notice and requested additional Supplemental Energy bids during the period due to high loads and temperatures in the area. Today the ISO is declaring GENERATION Restricted Maintenance Operations for the period from 09/03/2002 06:00 through 09/03/2002 21:59. The ISO anticipates generation resources may be inadequate for the period covered by this notice."