From: Steve

Subject: energy crisis

Date: Friday, May 11, 2001 9:13 AM

Dear Mark Williams (KFBK talk show host, for those others getting this message)

   You mentioned the $2,000 price of energy the other day, not
paid to the power generators, but to the middlemen. From what I understand, (and please
correct me where I am mistaken) energy is to be bought daily and that is why we have
middlemen like Enron. Enron scoops up contracts for energy (probably on long-term) for low
rates. If the state didn’t ask for enough energy early enough, it has to go to the spot
market, through the ISO, probably still dealing with middlemen such as Enron.

   So, here’s the game: Enron is nice enough to offer $10 per
megawatt to the energy producers, giving them more than their costs and keeping them
happy. It holds that energy hostage until the day before when the state has to choose how
much it wants to get, telling the state it has 99% of the energy needed. The state has to
use the ISO to get that last 1% of the energy (that middlemen have tied up). The only
energy left to obtain (because middlemen have 99% of it tied up) is very expensive, like
$2,000 per megawatt.

   Because the price for the day is set by the last seller to energy
pool, the 99% held by middlemen plus the 1% held by tiny local producers is sold for
$2,000. Well, guess what? Enron makes $1990 on 99% of the energy, making enormous profits.

   Does Enron sell all of its energy? No, but if it makes so much on
what it sells, it can throw away a lot and probably writes it off as a loss!

   Follow the money! So who owns Enron and the other middlemen? is it
people like George Bush, Dick Cheney, and others in his crowd? Yes! So, guess why they
don’t want to conserve?

   Would production of more efficient devices help the economy? Yes,
because industry would hustle to build them and customers would (and are) hustling to buy
them. So, it looks like our administration is anti-conservation because they want to rape
the people’s savings to fill their own coffers!

   Can we do something about it? Yeah, but not what the whole media
scene is saying. First, change it so energy is not bought daily through middlemen. Second,
don’t have the day’s price set by the last (and most expensive) supplier. Third, tell the
power people that the state of California will not buy energy over a certain reasonable
price, making it so it’s not profitable for middlemen to hold back energy and write it off
until their other purchases can be sold at obscene prices.

   Will anyone do this? Not unless someone who has a soap box to
stand on, like radio, TV, and the papers point these simple things out!

Steve Holmes

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