Showing posts with label Enron. Show all posts
Showing posts with label Enron. Show all posts

Sunday, February 6, 2011

WE NEED UTILITY REGULATION NOW


Many of  may have missed the huge emergency in northern New Mexico. Some of you don't even believe we are a state. And during the huge storm that brought record low temps (-34F at my house) even the Weather Channel said it covered from Texas to Maine.

We were all huddled down in our homes and getting our news from each other via Internet, Facebook, and telephone. We are an area that has only weekly papers and spotty coverage on radio. Our television is from some other place. But news quickly spread when the natural gas began to run out beginning in Albuquerque and spreading north up the Rio Grande valley to the Colorado border.

First the media lied when they shut down schools. It was because of road conditions. Then various agencies began to make calls quietly offering vouchers to people that might be suffering from the lack of heat. Taos got hit particularly bad because they depend on natural gas and have all the stores we all use. After being house bound for a couple of days everyone hopped over the mountain to shop. Smith's pipes were frozen, and the gas was out everywhere. The electrical coop was in a state of emergency planning for a sudden surge of electrical use do to dependence upon electric space heaters. They quickly sent around e-mails and had mayors in the area post on the internet rules for conservation of energy. They included staying off the internet. This rather reminded me of the Egyptian crisis.

How do you run out of natural gas? Especially in New Mexico where there are huge deposits of it. The explanation was that Texas had shut down the compressors to the gas pipelines to the gas utilities in New Mexico because of rolling electric black outs in Texas due to the cold. Why was this reminding me of the Enron scandal in the early days of GW's presidency? Enron, a Texas based firm, pretended a shortage of electrical power in California and created black outs to enable a raising of the rates. But surely this gas crisis was just a lack of planning and consideration in the wake of a huge unexpected storm?

Evidently not. I was wondering why conservation of electrical usage would necessitate the shutting down of compressors. Surely they could be isolated from the blackouts and kept up and running? And evidently they were. The gas company just chose to send New Mexico's gas to Oklahoma. Why should that have even been their choice?

Some of our residents are beginning to get gas back. Natural gas is being obtained from other pipelines. Residential lines have to be re-pressurized and checked and relit. It is a slow process and natural gas companies from the surrounding area are sending in technicians to help in the laborious process. No doubt this will mean rates get raised. Businesses in Taos and Red River have been shut down since last week and may not have heat until Monday or Tuesday when a new Arctic cold front is coming our way. We are still in a state of emergency especially if this can be pulled on us anytime a corporation decides they want to to increase their profits.

There needs to be a congressional investigation of this and it needs to be now. And I have to ask why wasn't deregulation of public utilities stopped after the Enron scandal? Clearly we cannot depend upon people with a profit motive to act responsibly.

Monday, March 23, 2009

Somebody to Blame


Remember this kid's game? They seem to have upgraded it from my days. No more dangerous pins. But if you watched the Sunday talk shows you will probably have noticed it has become an adult game.

The object of the game (especially if you are a Republican) is to find a Democrat to blame the whole economic mess on. This began under GW's watch and because of his deregulation and the first TARP funds were asked for by him, voted on my the Republicans that held both houses at the time, and doled out by Paulson with no strings.

All that said, it matters only whose fault it is to the extent we don't do whatever stupid thing they did again.

I was about to turn off my stream videos of economic panels when someone finally said something that made a great deal of sense: "Too big to fail. Ergo to big to be managed."

We got in this mess because GW said AIG was too big to fail. Too big to go the Chapter 11 bankruptcy route which would have negated all those contracts for huge bonuses. And why did AIG and the other mega banks like Citibank and Bank of America get too big to fail? Because the Republicans, wanting free trade, deregulated the industry and allowed them to gobble up lessor banks untill they became slugs unable to move and adjust quickly. Sort of financial Jabba the Huts from StarWars.

This is not capitalism or even free trade this is blackmail by legal mobs of CEO's. When three CEO's can meet on a corporate jet and decide on how they are going to rape customers we are talking financial mafia. Why else with deregulation would all credit card fees and rates and excesses be the same across the board?

And the banking industry is just where it has currently shown up. Here you really notice it in gasoline prices! No individual station can charge a lessor amount or their supply of gasoline gets cut off. Or how about electrical utilities. I live on a coop but we have to buy our electricity form Plains Electric. They and every other electricity producer doubled and tripled their rates in the middle of winter. Remember Enron? They even did rolling blackouts to convince buyers of their power they had to pay more and more and more.

Then there are current food prices. They raised prices because of gas prices in 2008. Well, gas is half that price now. Corn and other grains which were going into ethonal are way cheaper now, but have we seen a cut in prices? No! They retool and redesign packages to sell us less at more but simply lower prices or stop excess packaging? No!

The mob mentality developing around AIG bonuses is not going away because they are merely the tip of the iceberg. The American consumer has been treated like the Donkey's Ass for so long we can no longer sit down comfortably. This shit has got to stop.

PS: The blame game isn't working. You can spindoctor this all you want. We don't care who did it. Fix it.