Bailout $ could have bought power plants

We could have bought all the plants: For the $2 billion of taxpayer (eventually to be ratepayer) money spent since mid-January to buy electricity, detailed by the San Jose Mercury yesterday, California ratepayers could have purchased all of the in-state plants that the utilities sold to private companies that are now gouging us. California¹s three private utility companies sold off power plants valued at $1.7B which produce approximately 20,000 megawatts of electricity (more than a third of the state¹s total generation). $1.7B is slightly less than the $2B of taxpayer money that has been authorized for procurement of electricity since mid-January, when utilities stopped paying their power bills and independent energy companies instigated rolling blackouts. The blackouts ended two days later, after the Governor began buying power directly from the energy generators. The utilities ultimately sold the plants to nine buyers for $3.1 billion, well above their book value ­ but still less than two months¹ worth of state expenditures at current rates. As FTCR noted last month, opening the state¹s treasury to the energy profiteers will only inspire the blackout blackmailers to demand more money, and to resist as long as possible negotiating a fair price for long-term contracts. We cannot permit the energy cartel to steal the state¹s surplus. Solution: a windfall profits tax, eminent domainŠ and some strong leadership. For our press release on this, visit our web site.


[PG&E]