Refunds Case Adds Up to Payment to Suppliers (Davis digs CA $1 Billion deeper into debt)

Energy News Data Corporation ^ | August 26, 2002 | Shauna O'Donnell

[Robert357]

At a week-long hearing in San Francisco, Federal Energy Regulatory Commission administrative law judge Bruce Birchman presided over testimony and cross-examination of witnesses in the California refunds case. One witness, who represented the Attorney General's Office, the California Public Utilities Commission and the investor-owned utilities, conceded that no matter how the money roll was sliced, suppliers and sellers of energy into the California Independent System Operator and California Power Exchange markets during what has been called the "refunds period" would be the ones receiving checks.

[Robert357]

In the print version not available for free, the article goes on to state that the unpaid balance owed to suppliers may well top $2.5 billion and that the refund amount might end up at about $1.5 billion. Actually it states, "Stern did admit that the generators and suppliers of energy into the ISO and PX markets during the refund period were owed between $2 billion and $2.5 billion. He also estimated that the total refund amount derived by calculating the current mitigated market-clearing prices, as stipulated by FERC, was somewhere between $1 billion and $1.5 billion. Therefore, in the aggregate, Stern conceded, the net amount--roughly $1 billion --would be owed to suppliers, not buyers of power."

There you have it. To handle the the "refund" that Davis has been pushing FERC to issue, the State of California and its electric customers will need to pay more than they get back! No wonder the power bonds are going to need a healthy multi-billion dollar reserve fund!

[Robert357]

I thought you folks might be interesting in this update on how Davis has shoot off more toes with FERC!

[Robert357]

Sorry, "interested" not interesting.

[DoughtyOne]

Isn't the fiscal year over on June 30th in California. I've lost track. But by now we are mandated by law to have a balanced budget presented and passed. We don't. What gives?

[Ernest_at_the_Beach]

Thanks for the news Robert!

I am so surprised!
/ NOT!!!

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[Ernest_at_the_Beach]

BAAWWAAHHAAAAA!!!!

We (You and I and others at our position in the power structure) must follow the laws!

That is who the laws are meant for.

Davis and cronies are above the law!

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[Ernest_at_the_Beach]

He -- Davis - (does have Emergency Powers you know) so it is all nice and legal!

[DoughtyOne]

If I were Simon I wouldn't let this go on forever. I'd blast Davis out of the water for not being able to cover-up his twenty-four billion dollar deficit. And if as I suspect Davis initiated a ton of bonds to cover the debt, I'd ask where when the ballot was held for the California voters to approve of tens of billions of dollars in new debt?

[Ernest_at_the_Beach]

Saw a Simon Attack ad today on Davis over the Dioxin thing in SF.

It was pretty good.

[snopercod]

Thanks for keying in the teaser.

Isn't it amazing that Davis is still screaming about being gouged by companies that he hasn't paid in the first place?

I run into the same kind of thing in my line of work (electrician). I'll go spend several hours or several days at somebody's house, doing what they ask. Then they refuse to pay, claiming that my boss charges to much.

One has to ask, "Who is gouging whom?"

[snopercod]

...when the ballot was held for the California voters to approve of tens of billions of dollars in new debt?

Thank God somebody gets it. This issue is like an elephant standing in the middle the ballroom floor, being ignored by all the attendees as if it were not there at all.

Never mentioned in the media, or by any of the candidates on either side of the isle...it's as if the California Constitution did not exist. Simply amazing.

[DoughtyOne]

Good deal.

[DoughtyOne]

Well, this is August. Simon's people may have rightly surmised that this will be around for another month or so, and that it will be more likely to go nuclear if it's revealed then. I sure wouldn't give it a complete pass for much longer. It's a huge issue that should sink Davis all by itself if handled right.

[Dog Gone]

Oh, this won't make lewislynn happy at all.

[NormsRevenge]

LOL ..
DUMP DAVI$ & the Den of Socialists



GO SIMON

[Gophack]

I heard a radio commercial that I thought was hilarious. It was just before 10 a.m. on Modesto 1480 (during Rush). It was about "e-gray" and the "auction for favors", how for only $25,000 Oracle bought a $95 million state contract, and for $70,000 Tosco got to dump 600% more cancer causing chemicals into the water.

[Gophack]

If I didn't 1) think that Gray Davis is the most corrupt Governor in the history of America; 2) think that Bill Simon would make a good governor; or 3) think that Davis wouldn't raise taxes on November 6th to fix his monumental mess, I wouldn't wish this sorry state of financial affairs on my worst enemy, least of all Bill Simon! Davis has so decimated California's financial solvency, it's going to take the best financial minds in the world to get California out of this hole.

Not only do I think Gray Davis should be thrown out of office, I think he should be thrown in jail for graft and corruption AND gross fiscal malfeasance. What he has done to California is a crime.

[daviddennis]

I was at the Freep on Saturday, and engaged a nice liberal lady in conversation. Asked her what she thought of Gray Davis. She told me he was doing the best he could in a tough situation.

I told her that Davis was borrowing money like crazy so that future budgets were in terrible danger. Surprisingly, she conceded this point, and then went on a lengthly rant about those refunds we would surely get from the power companies.

I pointed out that the power companies were half-bankrupt and wouldn't be able to disgorge much of anything. She admitted this, and said that "they" would then freeze the assets of all those shadowy figures she felt were behind every corporation.

Fat chance, I thought.

I hope she sees this article. Unfortunately, I don't think KPFK (the only news source that doesn't give in to the corporate conspiracy, she said) is going to cover it.

I found it interesting to talk with her, because I have a feeling this is how a lot of the left thinks. Definitely scary.

D

[Dog Gone]

All the "shadowy figures" behind those evil corporations combined do not have enough assets to make a dent in California's budget problems. Nor do they owe California anything, anyway.

But those are just minor details, and not important to a liberal who wants to justify voting for Davis, who incidentally has a campaign warchest brimming with millions of dollars he extorted from evil corporations.

[daviddennis]

Well, yes. And I agree that at this point, nobody owes anyone anything, for all the grandstanding.

But it does seem strange to me that it would appear that absolutely nobody has benefitted from California's energy crisis. How could this be? Surely if you pump $12-odd billion around, someone's going to do better than before?

Instead, the utilities are doing worse, the energy trading companies are doing worse, and the public is surely doing worse.

Where did all this money go? Did we make anyone rich?

(Understand, if we did, it's fine with me. It just seems so puzzling that the money appears to have vanished into thin air).

D