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 <A HREF="http://www.originalsources.com/OS12-00MQC/12-28-2000.1.html">
Original Sources</A>
http://www.originalsources.com/OS12-00MQC/12-28-2000.1.html

California’s Power Crisis - a natural result of rampant Environmentalism

Nothing was done to plan for the future by improving water supplies or
electrical power

By: Mary Mostert, Analyst, Original Sources (www.originalsources.com)

December 27, 2000

I lived in Northern California for 25 years, most of it in El Dorado county
which is the source of much of the water used in Sacramento. However, in all
the years I lived there, almost nothing was done to plan for the future by
improving water supplies or electrical power for the county.

This has been a problem in California for many years. At one point, Marin
county, which is across from San Francisco, simply refused to improve its
water supply, in spite of a growing population. The thinking behind its, and
El Dorado County’s, backwardness was simple. If the people living in those
counties refused to provide for an increase in population, through zoning
ordinances or failing to plan for them, they could keep the population down.

Of course, it didn’t work. At this point there are over one million illegal
aliens in California. There’s been a natural increase, in spite of everything
the no-growthers could do to convince folks they shouldn’t have children. At
the insistence of the no-growthers, California voters opted in 1989 to shut
down its Rancho Seco nuclear power plant near Sacramento. There was no plan
to build another, or fix Rancho Seco

So, guess what? There is a shortage this winter of electrical power in
California and electricity prices are sky-rocketing. This has prompted
California’s Democrat Governor, Gray Davis, to go to Washington, D.C. and
threaten Federal Reserve Board Chairman Alan Greenspan and Treasury Secretary
Lawrence H. Summers with “using his emergency powers” against
power-generating companies.

One of his threats was to declare an emergency and call out the National
Guard to take over the power plants as long as the emergency lasts.


"The problem is that the generator can charge anything they want today and
the only people that have control over them are the [Federal Energy
Regulatory Commission], which has refused to take any control over them,"
Governor Davis said on the "Nightly Business Report" on PBS. "I am not going
to let these generators, making eight or nine hundred percent [profits),
frequently gaming and market-sharing the system unduly, drive California to
its knees," he said. He also warned the power-generating firms that "if
deregulation fails in California, deregulation is over in America."

According tothe Washington Times today,


“Consumers in California this winter are faced with a choice between power
shortages and skyrocketing electricity bills, while the state's utilities are
veering toward bankruptcy because of the astronomical prices they have to pay
to import the energy needed to supply the state. “Also yesterday, the parent
company of Southern California Edison Co. revealed that it wants to raise
consumer electricity rates by almost one-third, effective next week. “Many
California businesses, including vital Silicon Valley companies that have
driven growth in the nine-year economic expansion, are faced with paying the
escalating electricity bills or shutting down and laying off workers.”
It’s not very likely that Gray Davis and the Californians are going to have a
great deal of sympathy for their self-inflicted plight. The problem is not
de-regulation. The problem is in the no-growthers determined effort to push
all the responsibility for its needs onto other states. For example, when
they closed the Rancho Seco nuclear power plant, how was that loss made up
for consumers in California?

They simply began to buy more electricity from generation plants in the Four
Corners area where Utah, Colorado, Arizona and New Mexico come together.
California eliminated a nuclear power plant, which produced the cleanest and
most efficient electricity available, in favor of electricity produced by
plants that use coal or natural gas to generate electricity. It didn’t bother
California in the least that by closing down Rancho Seco they were increasing
the pollution for people in New Mexico, Arizona and even in Mexico. After
all, they didn’t live there.

Now, it appears from the Washington Times report, California’s short-sighted
no-growth policies of the past 20 plus years are coming home to roost and
spilling across its borders to the rest of the nation:

“This winter's record-high prices for natural gas are partly the result of a
leap in demand for gas from California utilities, which must use the
clean-burning fuel to meet environmental regulations.

“Other Western states have seen their electricity prices skyrocket as
utilities divert their electrical supplies to California, many of them under
orders to do so by the Clinton administration. Any bankruptcy by California
utilities threatens to destabilize already-troubled financial markets.”

Of course, in typical socialist fashion, Governor Davis is taking no blame
whatsoever for the situation California finds itself in. In fact, he blames
the energy crisis on “greedy power generators who are exploiting the recent
deregulation of wholesale power prices to gouge California utilities and
consumers.”


That's like Clinton blaming “greedy” American oil producers for the fact
that, during his Administration, the price of oil rose from $10 a barrel to
$37 a barrel. Oil producers in America went out of business in droves during
the Clinton Administration, making us heavily dependent upon foreign oil.
Why? Because that’s what the environmentalist goal was - as articulated by Al
Gore. Raising the price of fossil fuels and putting refineries out of
business in America was a deliberate effort to force people to use less
fossil fuels.

In a speech earlier this month, the Alan Greenspan warned that persistently
high energy prices could derail the record-long economic expansion the United
States has enjoyed in recent years. The situation in California could cause
more than just higher natural gas and electricity prices for Californians.
Some analysts say that the situation “is creating serious financial risks
because a major bankruptcy and default by one of the California utilities
would roil already traumatized markets.” Edison International told the
Securities and Exchange Commission it wants to raise consumer electricity
rates by 30 percent on Jan. 4. Utilities say they will have to start
rationing electricity if they are not granted the rate increases.

Before the election, Gray Davis was able to get temporary help from the
Clinton Administration which issued an order instructing Western utilities to
make power available to California just before Christmas. However, many
out-of-state utilities are reluctant to sell power to California utilities
because of the financial problems. Wall street ratings agencies are
threatening to downgrade California utilities debt, making it impossible for
them to get loans to pay for the imported power.

All of this does not bode well for the rest of us. However, it undoubtedly is
music to the ears of Californian environmentalists. They have succeeded in
making fossil fuels, gasoline and natural gas scace and expensive, while
eliminating a nuclear power generating plan and creating a shortage of
electrical power in California as they blame the whole mess on “greedy”
business people.

Of course, California’s windmills, built at the insistence of the
environmentalists, are still working. At least when the wind blows.

Wrong again! A reader informs me that the windmills are off line - down for
State of California mandated maintenance in the middle of the power shortage!
Are you listening, Governor Davis?

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