From: Steve Wingate 
Subject: IUFO: CA Blackouts Used To Extort Higher Payments From Consumers?
Date: 1 Feb 2001 17:01:45 -0500
To: IUFO , SNETNEWS ,
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                                    CA Blackouts Used To Extort 
                                    Higher Payments From Consumers?
                                    From Brasscheck 
                                                    2-1-01


                                (sent in by a reader)

                                For a written confirmation of what we all assumed,
                                that the blackouts the week of January 15 were a
                                pressure tactic by the utilities to get the taxpayer to
                                pay their debts, see Harvey Rosenfeld's Foundation
                                for Taxpayer & Consumer Rights Press Release of
                                1/25/01 at:
                                http://www.ftcr.org/utilities/pr/pr001077.php3 
                                  
                                Pertinent paragraph states: 
                                  
                                Referring to the rolling blackouts that shut down
                                portions of the state last Wednesday and Thursday,
                                the memo by Credit Suisse First Boston concludes
                                that the blackouts were likely "intended to soften up
                                the Legislature and the voters to the need for rate
                                increases." A copy of the memo is attached. The
                                Los Angeles Times today reported that the firm has
                                been advising Assembly Speaker Robert Hertzberg
                                on the energy crisis. 
                                  
                                Consumer advocates said that the memo confirms
                                their analysis that supply shortages were not
                                responsible for the blackouts: "We didn't have
                                blackouts until the utility companies, unable to win a
                                $10 billion ratepayer bailout by threatening
                                bankruptcy, decided to stop paying their power bills
                                last Tuesday. The next day, the blackouts began,
                                and the day after that, the Legislature approved the
                                Governor's emergency request for an additional
                                $400 million for the state to buy electricity. Then the
                                blackouts stopped."


                                                                         
                                  
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