http://www.onlinejournal.com/Special_Reports/Chin021101/chin021101.html
The extortion of California: The wrath of Bush and the Texas power cabal
By Larry Chin
February 11. 2001—California teeters on the brink of darkness. The state is
threatened with daily power blackouts. Natural gas may be cut off in the
coming weeks. With a predicted hot and dry summer approaching, state
politicians are scrambling for eleventh hour remedies.
George W. Bush, Dick Cheney and the consortium of Texas power companies could
not be more pleased.
The state that overwhelmingly rejected Bush and the Republicans at the polls
is being brought to its knees. The Democrats of California—-which include
many of Bush's staunchest foes—- are being embarrassed and politically
damaged.
As Governor Gray Davis struggles with bailout plans, Bush's Texas power
supplier friends and campaign contributors, led by Kenneth Lay of Enron
Corporation, are raking in billions of dollars by selling power at inflated
prices into the sputtering California power system. Enron reported a record
fourth quarter profit. Now, California has become its own power buyer (and is
in the process of signing long-term contracts locking in power prices at
historic highs), and "fast tracking" new power plant construction. Texas
suppliers will make billions more in the years ahead.
Extorting California is even more fun than Florida election fraud. And
considerably more profitable.
Bush's Partners in Crime: Follow the Money
Enron, TXU, Dynergy, AES, Reliant and other oil-soaked Bush corporate
surrogates are holding a gun to the head of California, whose economic and
political future are at stake. Governor Davis has branded the Texas power
players as 'pirates and plunderers.' He was being kind.
Two of the big Texas energy operatives, Enron's Kenneth Lay and TXU's Earl
Nye, have served on the energy team of Bush's transitional administration and
were major campaign contributors. Enron contributed over $555,000—-the most
of any Bush corporate donor.
Lay, a former Pentagon operative, is a long time friend to the Bush crime
family. Enron, which has done business throughout the developing world with
CIA assistance, was involved with the George H.W. Bush administration in a
number of questionable Middle East business deals after the Gulf War. Lay
employed two of former president George H.W. Bush's closest friends and
cabinet operatives, James Baker and Robert Mosbacher, to hustle contracts
after they left office.
Lay's residence is a stone's throw from Bush Jr.'s Texas ranch The two have
shared many beers and Houston Astros games (at Enron Field). According to the
Center for Responsive Politics, Lay and Enron president Jeffrey Skilling
personally donated $100,000 to Bush. Lay personally lobbied other top Enron
executives to give at least $1,000 to Bush. The Bush campaign borrowed
Enron's corporate jets eight times in 2000.
W's cozy business alliance with Lay and the Texas energy cabal is not news.
While governor, Bush pushed aggressively and successfully for relaxation of
environmental and consumer protection regulations. This in turn allowed the
companies to post record profits, while polluting the skies and water of
Texas.
Lay was rumored to be Bush's first choice to be energy secretary, prior to
the appointment of Spencer Abraham. Many believe Lay serves in this capacity
today, from behind the scenes. Although Lay has denied a quid pro quo
relationship with the new administration, his denials are as believable as
Jeb Bush's recusal during the Florida vote "recount."
When you are a friend of the Bush family, you are a friend for life.
Call It What It Is: War
The Bushes are old hands when it comes to staging, waging and benefiting from
war.
War is force designed to compel an adversary to submit to one's will. In wars
of attrition, isolation (political, geographic and economic), and the choking
off of supplies (including electricity, light, gas and heat) are standard
techniques designed to inflict maximum suffering. Over an extended period,
frustrated populaces (be they Iraqi, Nicaraguan or Californian) are softened
to the point that they will accept whatever ends the torture.
With California, Bush/Cheney pursue a number of "divide and smash" end games.
They are attacking on three fronts:
1) Open doors to power companies to pillage California itself. By selling the
severity of the crisis, and the myths of the benefits of deregulation and the
free market, Bush and the Texans seek to rip apart environmental laws, and
open up markets.
2) Use corporate media to promote, exploit and exaggerate the "power crisis"
to justify other parts of the Bush corporate/right wing agendas—including
drilling in Alaska ("it will help relieve California's supply problem) and
even the tax cut plan ("a tax cut will help pay higher energy bills").
3) Inflict maximum political damage to Democrats and other opposition, and
fuel outrage among voters.
Build Power Plants Now!
In one of his first and most telling comments about state's power problem,
Bush said, "California must be aggressive about increasing the supply of
power. We (Americans) cannot conserve our way to independence." This
statement encapsulates Bush's entire energy "policy." Forget conservation,
forget alternative energy, and just let The Boys plunder for profit.
Bush and the power companies are pushing the idea that California's increased
energy demand (fueled by the high-tech economy) has led to a shortage. But
according to Public Citizen, the "skyrocketing demand" is a sham. After
analyzing hourly load data compiled by the California Independent System
Operator (CAISO), Public Citizen has concluded that power demand in
California during the past six months has actually been lower than during the
same period in 1999.
The Bush junta is misrepresenting the facts, allowing the power companies to
gouge consumers, and speed the reopening of old power plants and the
construction of new plants by suspending environmental standards. They also
seek to block the ability of communities to oppose new plants. In other
words, bring a little Texas to California.
The supply side of the argument is also questionable. The problem has never
been the supply of power, only the price state utilities can or cannot pay
for the power coming from Texas. There is an additional suspicious element.
According to Public Citizen, "plants servicing the state with 11,000
megawatts of capacity have been taken out of service for a variety of
reasons—most undisclosed."
Bush finds it "interesting" that the harshest critics of a "balanced"
environmental policy are "having rolling blackouts in their state." By
balanced, he means one more accommodating to polluters. (Ominously, the
phrase "balanced approach" has been used repeatedly and robotically by
incoming environmental plunderer, Gale Norton, who is on record for
supporting more drilling across the US.)
The "build more power plants" mantra is working. Threatened with blackouts
(and increasing public frustration) the governor, the state legislature and
local officials are fast tracking power plant repair and new
construction—including plants previously rejected for environmental problems.
Deregulation: Fatten Corporate Wallets, Screw Consumers
When first approached by Gray Davis for help, Bush "bluntly rejected" price
caps and other short-term measures. "I'm against price controls," he told the
Associated Press. Bush has robotically echoed the business strategy
statements of Lay and the other Texas power wholesalers and natural gas
pipeline bandits. "California got itself into this mess. It's their law that
didn't allow forward contracting of gas (and) forced wholesalers to purchase
at the spot market," Bush muttered. "That's fine as long as the price of gas
is dropping. The failure of (the) energy policy has made the price of gas go
up."
In other words, if prices go up, California's consumers should pay up and
shut up.
Pushing For a Drilling Frenzy. Everywhere.
By raising fears of a power supply problem in California, they make drilling
within California and off the California coast more acceptable. A moratorium
that limits drilling off the California coast is due to expire this year. The
timing of the crisis is no coincidence.
Bush is also using California as an excuse to sell the idea of drilling in
the Alaska Wildlife Refuge and other pristine lands.
Selling the Tax Cut
Brazenly, Bush is trying to sell California on the benefits of his inherently
foolish (and economically crippling) tax cut. In recent days, articles have
abounded regarding how the tax cut would particularly help "high wage"
Californians.
Casually Bush has bragged, "lower taxes will help offset the higher energy
bills for Californians." As if energy prices should be high to begin with. As
if higher energy prices in the future are a given.
As if a tax cut that takes place over a ten-year period can provide one bit
of immediate "energy bill-paying relief."
Smash the Democrats
The political roots of the California "crisis" are Byzantine and tangled. The
history of California power stretches back nearly 100 years. The cast of
villains is dizzying, including the operators of the corrupt and monopolistic
state utilities (Pacific Gas & Electric Company and Southern California
Edison), and the corrupt state and local politicians of both parties that
have colluded with the utilities for generations.
What is undisputed fact is that California's flawed deregulation plan was
conceived and spearheaded by former Governor Pete Wilson—a Republican—in
1996. Yet today, the state's current Democratic leaders at every level are
taking 100 percent of the political blame.
Bush and Cheney have taken every opportunity to fan public outrage. They have
not lifted a finger to help (except for their middle finger). What better way
to cripple any Democrat up for election or re-election in 2002 and 2004? For
instance, Gray Davis, a darling of the DNC with future presidential
aspirations, has suffered irreparable damage. And what better way to distract
and neuter the likes of Barbara Boxer and Dianne Feinstein, and Maxine
Waters, than a rigged California disaster (at a time when Republicans are
trying to ram through a number of extreme policies)?
If public frustration in California ratchets up, it will not be long before a
"throw them all out" mentality kicks in—opening up an opportunity for the
Republicans to finally seize a Democratic and progressive stronghold.
Tyranny With A Smirk
California's "crisis" is providing an alarming showcase of what nightmares
occur when corporations and corrupt politicians have the absolute power to
play games with basic necessities. It is a spectacular example of Bush
tyranny. An illegitimately installed and ruthless president is exploiting the
miseries of common citizens to benefit wealthy corporations run by cronies
and fellow political operatives.
Going forward, there is no end to the convenient uses that a battered and
helpless California offers Bush and the Texans. As the administration
postures for new military forays in the Gulf, pumping up the threats posed by
Saddam Hussein, and Middle East terrorists, it is certain that the
administration will point to the California "supply problem" as a national
problem that could justify military action. Lay and Enron have been
aggressive in pushing for deregulation in other states, using California as
an example of how "partial" deregulation (price controls) should be avoided.
Upon discovering a CIA/corporate conspiracy in the 1970s film "Three Days of
the Condor," Robert Redford's character whispers in shock and disgust: "Oil.
This whole damned thing is about oil."
Yes, the whole damned thing is indeed about oil. And electricity. And money.
And it's no movie.
