Duke prices in California soared (cause CA ISO deadbeat)

Charlotte Observer ^ | Jul. 12, 2002 | STELLA M. HOPKINS

[Robert357]

As California reeled toward blackouts early last year, Duke Energy Corp. raised its wholesale power prices, some nearly sixfold in just weeks.

On the first day of blackouts, Duke sought to sell the state power for $1,170 per megawatt hour, according to documents The Observer analyzed. Six weeks earlier, Duke offered the state power from the same plant at $200. Duke also raised prices from its other California plants.

The average Carolinas home uses one megawatt hour per month at a retail cost of $73.

[Robert357]

Yes, when the dust settles and the history books find what really caused the California power crisis, the California ISO will have its fingerprints all over the causes and that will lead back to Gov. Davis.

I had forgotten the ISO credit worthy aspects to the increases in price during parts of the power crisis in California. Yes, people who buy on credit and don't pay are not folks who deserve the lowest prices.

I think that one of the best quotes that came out of those times was published Sunday, May 6, 2001, in the Contra Costa Newspapers in an article by Rick Jurgens,

When the shareholders of Duke Energy Corp. gathered for the company's annual meeting, Chief Executive Richard Priory

likened California's business climate to that of a Third World country: "It's no different than if it was Ecuador or Peru and we had investment decisions to make in those countries."

Ah, yes…..how business is really done in California under Gov. Davis. I suspect that the third world comparison also includes bribes to local officials or members of their families.

[Robert357]

I thought that you might enjoy this article, I did.

I saw this and the companion article in today's Ruff & Tumble and since I didn't see it anywhere else, I thought I would post it.

I find it interesting that the more the Democrats look at the problems, the more it comes full circle back to the Cal ISO.

There is documentation in the SAC Bee that the ISO asked Enron to submit high power bids. There is documentation by the SAC BEE that the ISO required Reliant to schedule power to non-existent loads. There is documentation that the ISO and DWR & SMUD may have done some unusual power transactions. There is documentation that the ISO ignored warnings from the software designer Perot Systems that the system could be gamed. The ISO consistently improperly scheduled its power purchases, as documented by FERC imposing fines and then forgiving them.

Now recently within the past week we have questions about the ISO when temperatures and loads sored. Specifically, why did it drop the price of electricity by almost a factor of two? Why did the ISO not declare a stage 2 Emergency on Tuesday, when many within the ISO have said it should have?

Ah yes......doing business in California under Gov. Davis.

[Robert357]

Sorry, I ddin't realize that the Charlott Observe was an LA Times affialiate.

[lewislynn]

I think that one of the best quotes that came out of those times was published Sunday, May 6, 2001, in the Contra Costa Newspapers in an article by Rick Jurgens,

When the shareholders of Duke Energy Corp. gathered for the company's annual meeting, Chief Executive Richard Priory likened California's business climate to that of a Third World country: "It's no different than if it was Ecuador or Peru and we had investment decisions to make in those countries."

Really? I thought this was the best quote:
"The idea that people will be able to hide the truth indefinitely ... is a gamble that will be lost," said Michael Aguirre, a former federal prosecutor who has filed one of several lawsuits against generators. "They won't be able to hide anymore."

Speaking of "Duke investors"... Duke Energy Corporation Stock Purchasers Represented By Schatz & Nobel In Class Action Lawsuit

And third world business practices:
Duke and El Paso draw subpoenas

And BTW, do a search before posting: Duke increased (price gouged) energy prices during California power crisis

[Dog Gone]

The Charlotte Observer reporter can hardly contain her glee that she figured out the ISO codes! Wow, what a scooperooski!

There aren't any new facts here. It appears to me that Duke was justified in attaching a credit risk premium because more than a year later, they still haven't been paid. Who cares what the bid price is, if the buyer doesn't pay for it? They might as well have charged $2 billion per megawatt.

The reporterette then ran to Frank Wolak, a well-known Stanford commie, for his opinion. Great journalism, Stella.

Duke must be confident that Davis will be defeated. Otherwise, I can't understand why they intend to continue to invest in California.

[Robert357]

My we are touchy this morning.

While I think that Duke, Enron and many other power suppliers may have been guilty of a lot of crimes, I don't think that the ones that most Democrats are trying to hang them with are the ones that their CEO's should go to jail for.

Specifically, when you compare the price fixing/gounging charges to the accouting practice/inflating sales/earnings to fluff up stock price; several of the companies seem have a lot more evidence of trying to dress their books than to rape California ratepayers.

In fact if Duke is still owed $225 million from the ISO, is it not California that has raped the power companies? I know for a fact that BPA is still owed money by California. I suspect that there are other power companies that are owed money by California. In such a case , who is the bigger crook, a quasi-state government agency that doesn't pay its bills or companies that try to get their money by holding future services hostage to past lack of payment? I suspect that very few who participated in the California power market have totally clean hands, but I also suspect that the hands of the ISO are especially dirty. And yet, I hear no continuing cry from you or others as to holding those at the ISO and those who appointed the leaders of the ISO accountable for any of the problems associated with the Calfironia power crisis.

[Robert357]

The Charlotte Observer reporter can hardly contain her glee that she figured out the ISO codes!

Actually given the skills of the typical reporters I usually talk to, I am pretty impressed as well!

Considering that Duke is owed over $200 million, if one feels that Duke is a crook, one should feel that the ISO is an even bigger crook.

[Bernard Marx]

when the dust settles and the history books find what really caused the California power crisis, the California ISO will have its fingerprints all over the causes and that will lead back to Gov. Davis.

I think it depends on who gets to write the "history" books. The way things are going the blame will fall entirely on greedy Republicans, capitalism, the usual socialist/education establishment screed.

[Ernest_at_the_Beach]

Davis is responsible .... . Fill in the blank!

The OC Register has a piece in the Commentary section of the paper (Not on the website ) with Steven Maviglio saying "Don't blame Gov. Davis for the down economy and touting his vetoing 7.4 billion in spending proposals by the legislature , cutting taxes by 4.3 billion and setting up a rainy day fund of 2.6 billion . not one word about the cost of energy and the related expense!

Got some strawberries for Davis right here -- see the banner.

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[Ernest_at_the_Beach]

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[Brad’s Gramma]

Bumping cuz I want a lot of people to see how stupid our Guv is.....

[snopercod]

Sorry, I didn't realize that the Charlott Observe was an LA Times affiliate.

Don't feel bad. Wall Street Journal articles are not allowed any more, either. I guess they must be an LA Times affiliate, too.

But as far as I know, we can still post full text from the Scottsville Squirrel Barker.

[snopercod]

It might be a good time to buy Duke stock.

[Dog Gone]

Buying a stock in freefall is pretty risky. It may be greatly oversold, but it may have a lot further to fall.

I thought Enron looked pretty attractive at $30, and then I thought I was probably a lunatic for not buying when it reached $20.

Fortunately, I'm a procrastinator, and I never bought at all.

[okie01]

"My we are touchy this morning."

You would be, too, if you were Goober Davis' mother.

Psssssst! "lewislynn" is her screen name...

[monkeyshine]

If this is like the guys who come out to sell water for $20 per liter after a major catastrophe? I suppose that's what they are trying to make it look like.

On the other hand, this was an issue of supply and demand, and no catastrophe. Everyone including ISO and the state's politicians and environmentalists and the NIMBY power-plant crowd are to blame for the short supply.