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.
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.
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
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.
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.
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.