A Powerful
Madness For Which There is a Cure
August
28, 2003
By Dan DeLisio
Albert
Einstein, one of the most brilliant people to have ever lived,
and the father of modern physics and technology, once defined
insanity as "the belief that you can get different results
by doing the same thing over and over." Thus Albert would
have undoubtedly viewed the Bush Administration's relentless,
single-minded pursuit of its nineteenth century, extraction-centered,
regulation-free, energy policy as a classic textbook example
which proved his point.
In the wake of the recent Northeastern/Midwestern power
blackout, during which he and other top governmental officials
spent an inordinate amount of time hidden from public view,
Mr. Bush rightfully received criticism for his failure to
publicly address the serious crisis in a timely fashion. It
was evident that Mr. Bush devoted considerably more time on
the evening of the blackout to the speech that he gave at
his fund raising dinner rather than to his short tape recorded
question and answer session with reporters prior to that dinner.
Because Mr. Bush has now evidently realized that it is not
a recipe for political success to appear to the voting public
to be more interested in gathering rich people's money than
in making sure that hospitals, elderly people, and those sweltering
in city dwellings have adequate power and water, he has, predictably,
embarked on his usual course of attempting to spin developments
to further his predetermined political agenda.
In the immediate aftermath of the blackout Mr. Bush first
attempted an outlandish exercise in revisionist history by
asserting that the power grid needed to be modernized and
that he "had said so all along." Mr. Bush apparently had forgotten
that it was he who actively lobbied the Republican controlled
Congress over two years earlier to vote down an amendment
offered by Democratic California Congressman Samuel Farr which
would have done exactly that.
In response to Mr. Bush's lobbying, the Republican controlled
House of Representatives, led by Bush's fellow Texan, Tom
"the Exterminator" DeLay,defeated the provision in three separate
votes. Thus, necessary and long overdue upgrades to the transmission
system which would have alleviated power bottlenecks that
threaten major cities with the omnipresent and recurrent prospect
of blackouts like the one just experienced, did not take place.
Thanks to the inaction of Mr. Bush and Mr. DeLay the grid
remains, as President Clinton's Energy Secretary Bill Richardson
termed it, in a "third world" condition.
Moreover, Mr. Bush's administration has been an ardent foe
of government oversight of the power market even when government
intervention was vitally necessary to protect consumers' access
to electricity. In 2001 Mr. Bush refused to continue the emergency
price caps imposed by the Clinton Administration on wholesale
power prices to California electric customers. He and his
administration stood by and did absolutely nothing to help
that state as it was systematically being bankrupted due to
its government being forced to pay outrageously inflated and
deliberately manipulated prices for power so that it could
keep the lights on for its residents. (See BayArea.com;
CommonDreams.org)
Additionally, their slavish devotion to the principle that
government intervention is always bad has resulted in the
Bush administration and its Congressional allies following
the urging of power company lobbyists and failing to allow
the imposition of meaningful technical reliability standards,
which carry the force of law, on power companies. (See The
New York Times)
As a result the oversight of the nation's vital power grid
was left solely in the hands of a power industry group, the
North American Electric Reliability Council. That entity had
in fact previously forecast the likelihood that the Midwestern
power grid, which includes Ohio where this blackout is thought
to have originated, would experience unanticipated "large
power flows" during this summer season; however, it lacked
any legal or regulatory authority to rectify the situation
and avoid disruptions. The best it was capable of doing was
issuing "recommendations" which power companies were free
to follow or to disregard as they chose. (See CommonDreams.org)
Now with the Presidential election looming large, Mr. Bush
has evidently recognized that it is politically unwise to
continue to be obstructionist, lest the lights go out on his
reelection bid. Thus, in an effort to show that he is "concerned"
and "on top of the problem" Mr. Bush has now taken to publicly
championing the passage of an energy bill which contains mandatory
reliability standards.
Even so, it is evident by his statements, and the statements
of those in his administration, that Mr. Bush has not had
a change of heart and "seen the light" regarding the necessity
of these rules. To the contrary, Mr. Bush is instead merely
attempting to now reinvent himself as a supporter of the same
mandatory standards which he helped to block these last two
years, only because they have now become politically popular.
Most egregiously, though, it is abundantly plain that Mr.
Bush is also attempting to capitalize on the public's fear
of more blackouts by tying passage of new reliability standards
to the passage of the rest of his and Vice President Cheney's
energy wish list, much of which is politically unpalatable.
It is also clear that he is attempting to use this situation
as an excuse to foist the cost of physical improvements to
the power grid system solely onto the backs of taxpaying electricity
consumers.
Mr. Bush's energy secretary Spencer Abraham has made abundantly
clear in public interviews that the administration does not
support a separation of a requirement for reliability standards
from legislation that would allow drilling in the Arctic National
Wildlife Refuge, a position that Mr. Bush has himself recently
reinforced in his public statements. (See The
New York Times) . Additionally Mr. Abraham dismissively
and nonchalantly indicated that it would be the ratepayers
who "obviously" would be footing the bill for any upgrades
to the transmission grid since, according to him "they're
the ones who benefit." (See The
Washington Post)
Moreover, and importantly, the energy legislation which
Mr. Bush is championing contains other highly contentious
provisions which have the potential for significantly negative
long term consequences to electricity ratepayers and taxpayers.
Chief among the more odious provisions contained in this legislation
is a provision which repeals the Public Utilities Holding
Company Act, (the PUHCA) which was enacted in the 1930's specifically
to prevent power companies from becoming giant multi-industry
behemoths and from passing on their losses in non-power related
industries to the ratepaying consumer.
Importantly the PUHCA also prevents utility holding companies
from engaging in fraudulent accounting practices, which are
not just modern day corporate shenanigans. Such practices
ran rampant in the 1920's and 1930's and were the impetus
for the passage of the PUHCA. The PUHCA seeks to avoid such
practices through audits and oversight by the Securities and
Exchange Commission of all utility holding companies required
to register under the Act. However, the lessons of history
have now apparently been forgotten or ignored by Mr. Bush.
Indeed the revelations regarding some of Enron's egregious
business practices which took place under "Kenny Boy" should
serve as a warning of what can be expected if the protective
provisions of the PUHCA are removed, since Enron specifically
sought and was granted an exemption from the PUHCA for its
wholesale power business which was free from the tight scrutiny
of the Securities and Exchange Commission that it would have
otherwise received under the PUHCA.
The proposed energy legislation pending in Congress also
allows the creation of massive new power companies via the
merger of existing companies, requires the transfer of federally
controlled transmission facilities to private consortiums,
allows owners of transmission lines to charge consumers more
for the use of those lines, and allows the Federal Energy
Secretary to order power lines to be built in a specific area
even if a state government objects to the specific site chosen
for the line. Also, the legislation contains more that $10
billion of brand spanking new tax breaks to subsidize the
oil, coal, gas and nuclear industries while further draining
the depleted national treasury.
This entire exercise is therefore a disingenuous bit of
political "bait and switch" on the part of Mr. Bush and Congressional
Republicans. The simple fact of the matter is that legislation
setting national transmission reliability standards can and
should have been passed years ago. Because such legislation
could achieve widespread bipartisan support it can pass right
now without being held hostage to these other provisions.
However the Bush administration, by stubbornly insisting
on the linkage of this long overdue reliability insurance
for the consumer to these other provisions, which are nothing
more than blatant handouts and handovers of vital national
infrastructure to highly profitable corporations, has once
again shown that it will unhesitatingly put the interests
of the powerful over the interests of ordinary people whenever
the two interests conflict.
The simple and stark reality is that none of these other
items on Mr. Bush and Mr. Cheney's wish list would have prevented
a blackout of the type most recently experienced. The blackout
was a transmission failure and not caused by lack of energy
production. Indeed as Secretary Richardson said, the problem
was actually the reverse, in that the current system encourages
overgeneration,and the grid is overloaded with power. (See
The
New York Times) Hence any power which could be generated
by the six months worth of oil that the Arctic National Wildlife
refuge can produce six years in the future would not have
averted this problem, nor will the building of new and environmentally
hazardous nuclear and coal fired plants avert future such
transmission disruptions.
Neither was this blackout caused by "too much government
regulation." Indeed the problem arose specifically because
there was insufficient government oversight, and there
was no government agency which had the authority to step in
and insure that the power would continue to flow. The industry
was left to regulate itself in this instance, and it failed.
Thus the dismantling of what few regulations remain in place
to protect the consumer from price gouging, corporate fraud
and monopolistic practices would have done nothing to avoid
the blackout nor will it do anything to avoid future such
occurrences.
Additionally, national interstate transmission facilities
are a critical national infrastructure. As with the Interstate
Highway System the cost of improvements should be borne both
by the government and the users, which includes power companies.
Power companies should most assuredly be required to help
pay for the required grid upgrades by a non-passthrough tax
on power company profits, and their rates should be tightly
regulated to insure that consumers are not gouged. Contrary
to Mr. Abraham's assertion power companies will inure great
financial benefit from these upgrades and they should not
be paid for solely by the government and the taxpayer who
have subsidized the profits of these corporations for many
years.
Significantly, as is reflective of his and his administration's
essential philosophy that energy policy should consist only
of unlimited drilling, strip mining and blowing off the entire
tops of pristine rural mountains, the energy legislation that
Mr. Bush seeks passage of contains no provisions to reduce
energy consumption, or to encourage the development and utilization
of alternative energy sources. No, Mr. Bush's energy policy
is planted firmly in the days of the late 1800's during the
height of the industrial revolution, when industries ripped
the land asunder with fearsome ferocity in order to pillage
the natural resources they were consuming with reckless abandon.
Science and technology have enabled humanity to long since
move on from the days when forests of smokestacks belched
carcinogenic fog that enshrouded cities and killed many, but
Mr. Bush's policies have not. The consequences to humanity
of ever-increasing fossil fuel consumption and accumulating
nuclear waste are evident for all to see except, obviously,
to Mr. Bush whose proposed energy policy is certain to guarantee
even greater pollution, environmental degradation and global
warming.
What is most galling about Mr. Bush's effort to return our
nation to the failed policies of endless consumption and reliance
on environmentally harmful methods of generating energy is
that it is wholly unnecessary, and it needlessly places the
health of this planet and its inhabitants at grave risk. Today
there is simply no reason why our country cannot achieve vastly
greater efficiency in the utilization of energy and begin
to immediately convert our energy production to cleaner alternative
methods of energy generation.
Quite simply it is long past the time for the adoption of
a new national energy philosophy. We need nothing less than
a fundamental paradigm shift in thinking which turns away
once and for all from the outmoded discredited wasteful practices
of old and which strongly embraces a new era of environmentally
friendly energy generation.
Our society is simply so complex and interconnected that
we can no longer afford to rely on power being generated at
some remote location and transported over many thousands of
miles before reaching its final destination. Such massive
far flung distribution networks waste billions of dollars
of energy annually in thermal power loss, (see EnergyPulse.net)
and these large networks are highly vulnerable to both natural
and man made disruptions. Our national focus, as reflected
by our national energy policy, should therefore be on empowering
citizens and communities to generate power locally where it
is least prone to sudden catastrophic disruptions. The more
decentralized our power generation system is the less likely
it is that that a failure will be total and the less harm
it will cause.
The creation of a vast network of small self-sufficient
producers of electricity can be accomplished through the use
of and improvement of existing technologies involving wind,
solar and biomass conversion. Also our government can and
should encourage less energy consumption through common sense
initiatives like raising automotive fuel efficiency standards
and increasing the energy efficiency of appliances, both things
that the Bush Administration has steadfastly refused to do.
Additionally we all must make the personal conscious effort
to use only the energy that we absolutely need and abandon
wasteful consumptive practices. Only through a concerted effort
on all of these fronts will we as a nation achieve true energy
independence and self sufficiency.
Once we have done so, we as individuals will then have some
much-needed measure of stability and control over this vital
part of our lives. Then we as a country can finally be free
of the need to commit our young men and women and our national
treasure to the protection of rapidly dwindling supplies of
fossil fuels and turn our full national efforts to solving
the myriad of vexing problems that confront us at home and
abroad and thereby achieve great things for mankind.
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