Thursday, July 19, 2007

Energy Task Force

Or...How Dick Cheney and Karl Rove bankrupted California's PG&E and forced governor Gray Davis out of office to be replaced by Arnold Schwarzenegger.

March 2001:

Cheney had just been informed by his longtime friend Thomas Cruikshank, the man who handpicked the vice president to succeed him at Halliburton in the mid-1990s, that federal energy regulators were close to completing an investigation into allegations that Tulsa, Oklahoma-based Williams Companies and AES Corporation of Arlington, Virginia had created an artificial power shortage in California in April and May of 2000 by shutting down a power plant for more than two weeks.

[...]

California's electricity crisis wreaked havoc on consumers in the state between 2000 and 2001. The crisis resulted in widespread rolling blackouts and forced the state's largest utility, Pacific Gas & Electric, into bankruptcy. California was the first state in the nation to deregulate its power market in an effort to provide consumers with cheaper electricity and the opportunity to choose their own power provider. The results have since proved disastrous. The experiment has cost the state more than $30 billion.

[...]

[D]ocumentary evidence of widespread market manipulation that FERC [Federal Energy Regulatory Commission] obtained in March 2001 [...] was sealed by FERC on direct orders by Cheney because it would have been a political nightmare for the Bush administration and would have derailed a recommendation of one of the cornerstones of the vice president's National Energy Policy: deregulation, and perhaps scuttle the policy altogether if evidence about the energy companies behavior in California was made public, according to half-a-dozen former FERC officials and former Energy Department officials.

[...]

This story is based on a two-month investigation into Cheney's energy task force; how the vice president pressured cabinet officials to conceal clear-cut evidence of market manipulation during California's energy crisis, and how that subsequently led Cheney to exert executive privilege when lawmakers called on him to turn over documents related to his meetings with energy industry officials who helped draft the National Energy Policy and also gamed California's power market. Truthout spoke with more than a dozen former officials from the Energy Department and FERC as well as current and former energy industry executives all of whom were involved in personal discussions with Cheney relating to the National Energy Policy.

  The story here at TruthOut


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