05-28-01
JUST HOW DUMB DO THEY THINK WE ARE?

Below is an article from the San Francisco Chronicle about Kenneth Lay of Enron and his attempts to 'rescue' deregulation.

The big question is - just HOW DUMB do Bush and his cronies think the American people are?

The remarks in italics are mine, and I've added emphasis here and there:


Saturday, May 26, 2001
San Francisco Chronicle

Enron's secret bid to save deregulation/PRIVATE MEETING: Chairman pitches his plan to prominent Californians
Christian Berthelsen, Scott Winokur, Chronicle Staff Writers

Energy executive Kenneth Lay, head of powerful Enron Corp., quietly courted Arnold Schwarzenegger, Richard Riordan, Michael Milken and other luminaries this week in Beverly Hills to drum up support for his solution to California's energy crisis.

(And support is needed badly; and Lay knew he wouldn't get support from regular people - because we're NOT STUPID!)

His prescription called for more rate increases,

("Just give us the money and no one will get hurt! That's right, peasants, form a line right there and empty your wallets! We aren't making enough money right now, and frankly, we don't give two hoots whether or not you can afford to feed your family, as long as we can keep our coffers overflowing!")

an end to state and federal investigations

("We're nice guys, really we are! And we WANT to do the right thing. But it's hard to be a good guy when the Feds are breathing down your neck...really, it is! So just give us freedom to do whatever we want, and don't be poking your nose into our business, and we'll do right by the American people. Honest!")

and less rather than more regulation.

(Because of course regulation forces the poor beleagured oil companies to resort to price-gouging. We all know that!)

Lay, a close friend of President Bush and one of his largest campaign contributors, hosted a private 90-minute meeting in a conference room at the Peninsula Hotel in Beverly Hills on Thursday.

Among the participants were Milken, the former head of the Drexel Burnham Lambert investment banking firm who pleaded guilty to fraud charges in 1990 and who now runs a think tank based in Santa Monica; movie star Schwarzenegger; and Riordan, the mayor of Los Angeles. Schwarzenegger and Riordan have been courted recently as GOP gubernatorial candidates.

One participant, who agreed to speak on the condition he not be identified,

(Is it just me, or are we dealing with some pretty nasty people here? What was this participant afraid of? Thumb screws? A knife in a dark alley? You know the scary thing? I think his fear was probably JUSTIFIED.)

said the meeting appeared to be geared toward getting participants to support Lay's vision and then champion it to officials who are trying to solve the state's energy mess.

PLAN TO RESCUE DEREGULATION

The source said the timing and tone of the meeting suggested Lay is concerned that California will abandon its disastrous experiment with power markets by either re-regulating the system or creating a government authority to provide electricity.

(Well, DUH. Once again, we are NOT STUPID.)

Gov. Gray Davis signed legislation last week to create and fund a state power authority that would build, buy and run power plants in California.

"They're trying to rescue deregulation," the source said of Enron executives. "They think the whole state power authority is a bad idea."

(Oh, I WONDER WHY they think it's a bad idea. Gee, anyone know?)

At the meeting, Enron representatives circulated a four-page position paper titled "Comprehensive Solution for California,"

(Anything with the word 'solution' in it makes me a tad nervous, considering who we're dealing with.)

which was obtained by The Chronicle. It said ratepayers should bear responsibility for the billions in debt incurred by the state's public utilities

(Of course - it's all OUR fault, right? I mean, god forbid anyone ELSE should take responsibility.)

and that investigations of power price manipulation and political rhetoric are making matters worse.

(Yes, let's quit investigating the price-gouging that's gone on...we don't really want to know the truth, do we?)

The paper made no mention of the possibility that much of the runaway electricity costs in California is due to market manipulation by power generators and traders -- a possibility given credibility in studies by regulators and economists.

(I'm sure that was just an oversight! After all, the price gouging is OUR fault. We made them do it! If we'd just left them alone and given them a completely free hand, none of this would have happened. Riiiiight.)

One of the talking points read: "Get deregulation right this time -- California needs a real electricity market, not government takeovers." Another point suggested giving consumers monetary rebates for conserving electricity.

(Hey, this guy obviously hasn't been briefed by Cheney - he doesn't know that the new motto regarding conservation is "Americans are too special to have to worry about conservation! Only nerds conserve!")

INVOLVED IN EARLY DAYS

Lay has been an aggressive champion of deregulated electricity markets and was an early advocate in persuading California to begin its experiment with a competitive power market system.

(He was there from the beginning, pushing the disastrous plan into place...but the crisis isn't his fault, oh no. Not fair to blame him!)

Lay has created a new kind of company in the process, one that essentially produces nothing but makes money as a middle-man, buying electricity from generators and selling it to consumers.

(And you know, this is the kind of guy that Bob Novak and others of his ilk calls 'productive' (ands thus deserving of a hefty tax cut). Whereas those of us who have trouble paying Lay's jacked-up prices are 'parasites'. Methinks Bobby has it a bit backwards!)

During the first quarter of this year, Enron's revenues increased 281 percent to $50.1 billion.

(Aww, is that all! No wonder they need to raise rates! Bilking the consumers out of $50 billion dollars is hard work!)

Asked about the purpose of the meeting, Karen Denne, a spokeswoman for Enron, said she would "look into that"

(DUH!! And they think WE'RE stupid?? Come on!)

and then did not return repeated telephone calls seeking comment. One participant said Denne was present at the meeting.

(Well, physically present, anyway.)

D.C. CONNECTIONS

Meanwhile, Lay's power in Washington is reported to have reached unprecedented heights.

(How surprising! Wonder how much power he'd have in DC if the REAL President were in the White House? Somehow I suspect that President Gore would tell this lowlife to take a hike.)

According to a story in yesterday's New York Times, Lay supplied the Bush administration with a list of candidates for jobs regulating the power industry and even interviewed one of them.

(Oh, sure, let's just put the Enron guy in charge. He's looking out for our best interests...right?)

The story also said Lay essentially threatened to seek the removal of the chairman of the Federal Energy Regulatory Commission, Curt Hebert, if he does not support Lay's desire to further deregulate the nation's electricity system.

("Do it my way or else! WE'RE running the country now!")

Lay denied the allegation.

(Oh. Well, okay, that's good enough for me! I can sure take the word of such a fine upstanding memeber of society, can't you?)

Also in attendance at this week's meeting were Bruce Karatz, chief executive of home builder Kaufman & Broad; Ray Irani, chief executive of Occidental Petroleum; and Kevin Sharer, chief executive of biotech giant Amgen.

Among those who were invited but did not attend were former Los Angeles Lakers star Earvin "Magic" Johnson; supermarket magnate and Bill Clinton supporter Ron Burkle; and Dennis Tito, recently returned from the world's first civilian space trip.

Milken, through a spokesman, confirmed that he attended the meeting, but declined to be interviewed. Schwarzenegger could not be reached for comment through a publicist, and Sharer did not return a call yesterday afternoon.

A spokesman for Riordan, Peter Hidalgo, said the Los Angeles mayor attended, but was "not intending to formulate any kind of policy position on this issue. His intent is to listen to all sides."

Attached to the Enron handout was a two-page open letter, addressed to Davis and the state Legislature, apparently prepared for those who support Lay's position and would be willing to sign their names to it. The source who participated in the meeting said those assembled appeared noncommittal and asked a number of questions of Lay, but did not agree to champion his agenda.

(Because they know what Lay does not...that we the people are NOT STUPID.)

E-mail the writers at cberthelsen@sfchronicle.com and Scott Winokur at swinokur@sfchronicle.com.
© 2001 SF Chronicle



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