Month: August 2003

Here’s another good Dan Walters column on the California energy crisis via Kausfiles:

* If Enron et al manipulated California’s energy market, it could happen only because former Gov. Pete Wilson and the Legislature — particularly former Sen. Steve Peace — created an unworkable, complex and irrational system in 1996. Those who really knew the energy business could see its flaws immediately and some, perhaps, exploited them. Whether they acted illegally, or materially affected the market, remains to be seen.

* When the crisis first arose in 2000 in the form of sharply rising wholesale power costs, Davis and other politicians refused to act decisively to nip it in the bud. California utility executives begged Davis and state utility regulators to allow them to raise rates and sign long-term supply contracts, but officials delayed for six critical months, until the utilities had their financial backs to the wall. Had they acted boldly in 2000, we would not have had such a severe energy crisis in 2001.

* California still doesn’t have in place a workable substitute for the discredited 1996 plan, nor do its politicians show any signs of working on the problem. Californians’ power rates are still among the nation’s highest, and with many much-touted generation projects on indefinite hold due to chaotic market conditions, the state is very vulnerable to another supply squeeze.

The history was like this: in June of 2000, San Diego became fully de-regulated and prices went up for a number of reasons, some of which were: A) a natural gas price spike, B) a drought that reduced hydro-power supplies, and C) a PUC order forbidding utilities from signing long-term energy contracts. Republicans urged the Governor to call a special session to amend the 1996 law creating the energy market, and he refused. In January, 2001, the blackouts started.

Davis was very much involved in all of this, and not just because he was on Enron’s payroll along with Paul Krugman. His inaction made a serious problem that could have been fixed into a major crisis.

See Dan Walters: Davis’ version of budget crisis doesn’t square with history:

The undisputed fact is that after a severe recession ended in the mid-1990s, the state experienced a solid, if unspectacular, gain in tax revenues for four years before the highly volatile high-tech industry produced a spike in personal income taxes — about 12 extra billion dollars — that lasted just one year before revenues resumed their normal pattern of slow growth.

When the extent of the windfall became known in 2000, Davis publicly — and prudently — declared that it would be a mistake to enact major increases in ongoing spending, or major tax cuts, and promised to resist them. But succumbing to pressures from both fellow Democrats and Republicans, Davis soon agreed to commit roughly $8 billion of the windfall to tax cuts or new spending. And when revenues did return to normal levels, the state was left with a “structural deficit” of roughly $8 billion a year — one that will continue indefinitely.

The mistake of enacting those unaffordable tax cuts and spending increases was compounded in the subsequent three years by budgets that papered over the deficits with creative, if misleading, gimmicks, raids on other state funds and loans of various kinds.

It’s about spending like drunken sailors and a busted income tax system, not about Enron and the tech bust.

It strikes me as odd that techno-populist Larry Lessig and his many disciples (Weinberger, Searls, Gillmor, Ito, Winer, et. al.) are are bitterly opposed to the recall. If you believe in grass-roots democracy, emergent democracy, and self-organizing movements, why stomp your feet and hurl angry insults about right-wing coups when the people have mobilized to make their voices heard? It just makes no sense. Lessig even tries to use some fuzzy math to invalidate the successor election:

So if this California recall succeeds, then more likely than not the Governor who replaces Gray Davis will have received fewer votes than Gray Davis. Davis could get, say, 49.9% of the vote, and would be “recalled.” But his replacement is chosen with a simple plurality. Thus, in a field of 200 candidates, it is more likely than not that the replacement governor will have gotten fewer votes than the governor he replaces.

This is what we call an “apples to oranges” comparison, since we have one election with a field of one and another election with field of a hundred or so. But even accepting Lessig’s handicap, Arnie’s polling better than the governor right now, 48 – 26.

One upside of the recall is that it’s taken both Kobe Bryant and the Nine Dwarves of the Democratic Party off page one for a while, and maybe that’s what’s got the TechPops upset: they’re mainly hardcore Deanies, after all.

This just in, from Mark Steyn via the new and improved Random Jottings:

Okay, Arnold’s not a Nazi. He was born in the Austrian town of Thal, but not until 1947, and thus was technically unable to join the Nazi Party no matter how much he may have wanted to. But he certainly has family ties to the Nazis. His wife’s grandfather, Joe Kennedy, was one of America’s most prominent Nazi sympathisers…Oh, wait. That’s not the Nazi family ties the Dems had in mind?…

Oops.

The latest CNN poll (see at Matt Welch) looks better for Arnie, worse for Bustamante, and horrible for Davis: 69% of likely voters support recall.

Developing.

How did American men win the right to vote? By taking up arms against the British and winning a brutal war, at the cost of great loss of life, liberty, and property.

How did American women win the right to vote? By nagging their husbands, mainly.

See Dean’s World: Special Message To Judith Weiss, Meryl Yourish, and Susan B. Anthony:

So, for Judith Weiss, Meryl Yourish, and all the other resentful feminists I know, I have a special message for you. It’s from all the males of America. It’s a message not just from us, but from your fathers and grandfathers and great-grandfathers:

YOU’RE WELCOME.

Is it any wonder that men and women use the vote to accomplish different ends?

Things are looking pretty rosy for Arnie right now, and Garamendi’s last-minute withdrawal at union request doesn’t make any difference.

Note also that joke candidate Arianna has more support from Repubs than from Dems, confirming every suspicion of Republican stupidity we ever had.

Will these numbers hold up? Probably not. 26% of Dems are undecided, and most of them will go for Bustamante, who’ll most likely pickup at least 60% of the Democrat vote. He’ll also attract a lot of otherwise not-voting Latinos to the polls to elect the first Latino governor in modern times. Arnie, meanwhile, will have to fight tooth and nail with death-wish wing of the Republican Party, most of whom will end up voting for Simon and McClintock. So Bustamante will Cruz to victory in October.

Is he a bad guy? Yes, pretty much. He’s indebted to the Casino-Americans, and he’ll have to support their Sacred Sites land-grab and all the other nefarious stuff they have to do in order to retain the image of victimization, such as stopping research on predecessors to the so-called Native People and on their cannibalistic practices. Bustamante will also be a pawn to the prison guards and the other unions that own little pieces of Gray.

The only significant difference I can see is that Cruz won’t be as indebted to the gay lobby as Davis, whose first real supporter was Sheila Kuehl, and he’ll obviously be way more indebted to the Latino lobby. That’s not a big difference. The people pulling Bustamante’s strings are more to my liking than those pulling Davis’, so in that sense it will be an improvement.

Bustamante and Garamendi in:

By late Wednesday, Lt. Gov. Cruz Bustamante, who had insisted for weeks that he would not be on the Oct. 7 ballot, announced he was entering the race.

“It’s definite,” said Richie Ross, Bustamante’s political consultant. Bustamante has scheduled a news conference for this morning.

Insurance Commissioner John Garamendi, another Democrat, said Wednesday evening that he too was considering entering the race and would make an announcement today. On Monday, Garamendi had said he strongly opposed the recall and did not plan to run. “A lot of things have changed since Monday,” he said.

Like we said, the Dems can’t afford to stay out. Bustamante has extra incentive to enter the race, since Davis has treated him like dirt the entire time they’ve both been in office, and extra-extra incentive in case the courts rule the replacement ballot isn’t needed: then it’s a head-to-head between Gray and Cruz, now sworn enemies.

This is way more fun that daytime TV.