-Caveat Lector-
CA Blackouts Used To Extort
Higher Payments From Consumers?
From Brasscheck <[EMAIL PROTECTED]>
2-1-01
(sent in by a reader)
For a written confirmation of what we all assumed,
that the blackouts the week of January 15 were a
pressure tactic by the utilities to get the taxpayer to
pay their debts, see Harvey Rosenfeld's Foundation
for Taxpayer & Consumer Rights Press Release of
1/25/01 at:
http://www.ftcr.org/utilities/pr/pr001077.php3
Pertinent paragraph states:
Referring to the rolling blackouts that shut down
portions of the state last Wednesday and Thursday,
the memo by Credit Suisse First Boston concludes
that the blackouts were likely "intended to soften up
the Legislature and the voters to the need for rate
increases." A copy of the memo is attached. The
Los Angeles Times today reported that the firm has
been advising Assembly Speaker Robert Hertzberg
on the energy crisis.
Consumer advocates said that the memo confirms
their analysis that supply shortages were not
responsible for the blackouts: "We didn't have
blackouts until the utility companies, unable to win a
$10 billion ratepayer bailout by threatening
bankruptcy, decided to stop paying their power bills
last Tuesday. The next day, the blackouts began,
and the day after that, the Legislature approved the
Governor's emergency request for an additional
$400 million for the state to buy electricity. Then the
blackouts stopped."
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