Skip to comments.California: California's Davis Demands FERC Order $8.9 Bln Refund
Posted on 05/23/2002 8:16:18 PM PDT by Ernest_at_the_BeachEdited on 07/19/2004 2:10:00 PM PDT by Jim Robinson. [history]
Sacramento, California, May 23 (Bloomberg) -- California Governor Gray Davis renewed his demand that federal energy regulators order power companies to refund $8.9 billion to the state, citing recent disclosures of market manipulation.
Davis told Federal Energy Regulator Commission Chairman Pat Wood in a letter that Enron Corp. memos prove the market was manipulated in 2000 and 2001 at the expense of consumers. Enron admitted creating fake congestion on transmission lines and other trading methods during a period when prices skyrocketed.
(Excerpt) Read more at quote.bloomberg.com ...
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Two questions which beg answers:
If Enron was soooooooooo successful in scamming the California market, why did they go bust?
And how, exactly, does Davis propose to extract blood from this particular turnip, anyway?
Davis isn't campaigning for a refund for the state. He's campaigning the state for a reelection...
Don't you just love how the amount of the needed refund keeps getting bigger and bigger. A FERC ALJ has already said that the State can only support numbers of a couple hundred million at most.
Even if FERC gets generous, I can't see Davis getting anthing cloase to what he is asking. But hey he has a 20 to 22+ billion deficit he has to deal with so he might as well think big.
There! That'll show 'em.
It wasn't gas trading that did Enron in. It was setting up for trading futures in bandwidth and emissions credits among other things. The DotBombBust and dumping Kyoto took them down.
In an electricity market legally constrained to spot market pricing and running at nearly 100% of supply capacity, it isn't hard to manipulate the spot price at the margin with but a 4% stake as Enron had. What's disingenuous about the libberills' arguments is that DWR, BPA, and other public agency suppliers of generating capacity were just as bad if not worse than Enron.
If he had any brains this would not have happened..
If he had any guts his own Attorney General would bring charges against the power companies.
And foul the market for campaign fundraising?
I think NOT!
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