CapitolWeek # 539 6/8/01
Energy Update
Racial Privacy Initiative
((Melissa))
Just ahead…
Who has the best energy plan?
Governor Gray Davis says California
needs immediate relief, but does his plan provide it?
Or does the President’s offer more
long-term energy stability?
Plus, what about environmental
concerns?
Begin
Soundbite
((Bill Magavern, Sierra Club))
Diesel generators are not only noisy
and smelly, but they also cause asthma and respiratory problems.
End
Soundbite
((Jack))
We’ll also give you an inside look
at how the state is getting its power in the first place.
And we’ll tackle another hotly
debated issue, the right to racial privacy.
The initiative’s author Ward
Connerly will join us.
Hello I’m Jack Kavanagh.
((Melissa))
And I’m Melissa Crowley.
Those stories and more next.
((Jack))
Thanks for
joining us.
As summer
heats up so do energy concerns. We’ll
compare proposed solutions…
And later
we’ll debate another hot topic: should you have to check off your race on
government forms?
But first,
we begin with debate over who is offering the best course of action for
California.
@ ISSUE
Governor
Gray Davis and President George Bush met last week on the state’s energy
crisis.
They did
not reach an agreement on price caps. Davis wants them, while the President
does not.
Both
propose bringing more supply on line, but some worry efforts to increase supply
could sacrifice the environment.
Begin Soundbite
((Bill Magavern, Sierra Club))
If Governor
Davis stays away from uncontrolled use of diesel generators, then certainly
he’ll be much more on an environmental track than President Bush is. We can meet our energy needs by using energy
more efficiently and by drilling in areas that will not despoil pristine
wilderness areas.
End Soundbite
((Jack))
Governor
Davis proposes streamlining the power permitting process,
as well as
possibly using diesel generators if needed in power emergencies.
Bush
proposes getting more supply on line by adding a new plant each week nationwide for the next 20 years. He also favors opening drilling in certain
areas.
Joining us
now to share more:
The
Governor’s appointed point man on energy, David Freeman, formerly with the Los
Angeles Department of Water and Power.
And
Republican Consultant and former Governor Wilson staff member Dan Schnur.
Dave, since
we got you here on a day when the price of electricity seems to be dropping,
let’s get to the good news first. Is it
true that we’re paying half for electricity than we did in January?
((David
Freeman, Energy Advisor to Governor))
Yeah, those prices have come down from the stratosphere to
cloud nine. The situation is better,
but we’re not prepared to declare victory yet.
Governor Davis’ programs are working.
We have long-term contracts in place so we’re not buying so much power
off of the spot market.
((Jack))
But are you buying around the market? Are you going around?
((David Freeman, Energy Advisor to Governor))
Well, longer-term contracts at lower prices is one of the
reasons, and, of course, we’re adding power plants. We’re not just talking about an energy policy, we’re doing
it. Power plants are being completed in
the state so that we are closing the gap.
We have more under contract, more production, and the big weapon is
conservation. You know who’s licking
this problem? It’s the people of
California, one at a time, by not using as much.
((Jack))
The first time I looked at the California Independent System
Operator web site today—and we tape this program on Thursday—it was the first
time that I saw green, normal operations.
Davis and his people seem to be doing everything right.
((Dan Schnur, Republican Political Consultant))
I think that’s exactly right, and I would like to
personally, David, pass on my congratulations to the Governor for his
extraordinary effect on California’s weather these last several weeks. If you could though—I have Oakland A’s
tickets on Sunday, so if you could ask him for sun, I would appreciate it. No, I mean, David is absolutely right in
that the conservation that the people of California have exhibited has had an
effect on this. I think you would also
agree, though, that while conservation is an important part of the answer,
particularly to a short-term crisis, as California’s population grows by the
millions and millions of people it is expected to over the next few decades
that all the best intentioned conservation can not lick the problem by itself,
and the increased production that he was talking about is a much more important
part of the answer.
((Jack))
If the
price of wholesale electricity is dropping dramatically, does that mean my
rates will go down?
((David
Freeman, Energy Advisor to Governor))
No, because
the wholesale prices are way, way higher than the retail prices, even as
they’ve been increased. The wholesale
prices are outrageous, and the Federal Energy Regulatory Commission is on a sit
down strike. The Governor is speaking
on behalf of the people. Let us be
clear on power plants. We’re not only
not against them, they’ve been built in the last two years, my friend, and so
while George Bush may be talking about nuclear power plants in the sky, we’re
building real power plants on the ground in California, and we’re closing the
gap with conservation and production and long-term contracts, so there is an
active program that is making it happen, and you can joke about the weather all
you want to. We’re happy to have mild
weather. That helps too, but all the
other things are in place.
((Dan
Schnur, Republican Political Consultant))
But on the
production side, you see the Democratic Governor of Washington state, Gary
Locke, who set up twenty-six boxcars worth of portable generating facilities on
top of the Columbia River in order to make sure the lights don’t go out in
Seattle this summer. The Governor of
Nevada had expedited power plant citing to the extent that they have major
plants, not peaker plants, but major plants that are coming online that were
cited and permitted in January. In
January, Governor Davis said he would have twenty-six peaker plants online this
summer. How far along on that are we?
((David
Freeman, Energy Advisor to Governor))
We are well
on our way. This morning, there were
two more added. The peaker plants have
been coming on in a steady way. We’ve
added four thousand megawatts of power plants, which is more than was added in
this state in the last ten years—
((Jack))
Dave, does
that then mean that this argument over price caps, a federal cap on the
wholesale price, which you say still is on cloud nine, does that mean that that
argument is basically moot?
((David
Freeman, Energy Advisor to Governor))
No,
no. Those prices are still on cloud
nine, and they need to come down to Earth.
All we are asking is that the Federal Energy Regulatory Commission do
its job under the law. For forty years,
the price of electricity has been capped and—
((Jack))
And the law
says, “Fair and reasonable.”
((David
Freeman, Energy Advisor to Governor))
Just and
reasonable, and it says, “shall.” It
doesn’t say, “may.” The Governor is
standing up for the people. You know,
consumer protection is still part of the American system, and it’s not good
enough for the President of the United States and his colleagues to say, “Well,
caps don’t decrease demand.”
((Dan
Schnur, Republican Political Consultant))
But, Jack,
to be fair, part of consumer protection is protecting
Californians from blackouts, and along with all the good work that Dave and
his colleagues are doing to protect us from blackouts, there’s no question
that, in posing price controls, we will limit the supply of energy moving
into California, leading to more blackouts this summer—
(Hubbub
ensues) But I’m talking about many more blackouts.
((David
Freeman, Energy Advisor to Governor))
The caps
don’t apply to new power plants. Now,
get the fact straight.
((Jack))
Let me ask
you this: what is the problem with price caps?
Is it that once they’re put on, politically they’re very difficult to
remove. Is that the problem with price
caps?
((Dan
Schnur, Republican Political Consultant))
That’s a
problem, but the greater one as I was saying earlier is supply. David is right. Price caps don’t apply to new generating facilities, and if
Governor Davis were doing the same good work as Governor Locke in Washington
state and Governor Guinn in Nevada and other western state governors, we would
not have to face this problem because we would have enough new power being
generated. The problem—just let me
finish, David. The problem is that even
if these caps don’t affect new facilities, generators in other parts of the
country are not going to sell their power to California if prices are capped
here. Getting back to my question to
you, David, of those twenty-six peaker plants, how many are online.
((David Freeman,
Energy Advisor to Governor))
The facts
are, contrary to political assertions, is that California has added more
megawatts of capacity in the last two years than either Oregon or
Washington. We are closing the gap in
this state, and we have added three cents a kilowatt-hour to the price so that
conservation is encouraged by a program that pays people not to use
electricity. If they conserve twenty
percent, they get another twenty percent, plus the impact of a price increase. We have an energy policy that does have both
conservation and production, and it is working, but we’re not all of the way
there yet. You can’t overcome a ten
year drought in a couple of years of activity, but that’s what’s going on.
((Jack))
At the current time, we do not have price caps. It’s a price cap free environment—
((David
Freeman, Energy Advisor to Governor))
Well, they
got a cap that’s Swiss cheese.
((Jack))
All right,
so it’s a Swiss cheese environment. One
of the generators, the Mirant Corporation, is postponing development of its
plant, even in a Swiss cheese environment.
((David
Freeman, Energy Advisor to Governor))
Well the
Mirant Corporation also just entered into a long-term contract to sell the
output, and they’re playing games with us, but we have created the California
Power Authority, which will come along in August, and if these out-of-state
generators who are trying to rob us don’t want to build power plants in this
state, we will see that they are built through the California Power Authority.
((Dan
Schnur, Republican Political Consultant))
Can I
follow up on that, Jack, because when you talk about out-of-state dowagers, it
begs the question which is: during your time as head of DWP in Los Angeles, Los
Angeles Department of Water and Power was the eighth most profitable power
plant in California. In fact, the
Department of Water and Power earned more than two hundred million dollars
selling electricity over eighteen months, and David Freeman was quoted—
((Jack))
Let’s just—
((Dan
Schnur, Republican Political Consultant))
Wait, let
me just finish. David Freeman was
quoted in December of 2000 as saying, quote, “A blind pig could make money in
this market,” and, in fact, the LA Department of Water and Power doubled their
profits at the expense of California.
((David
Freeman, Energy Advisor to Governor))
Well, we
sold on our costs and a fifteen percent return. We got profits, and we are for profits, and what you don’t fully
appreciate is that a cap can give people reasonable profits, but the absence of
a cap gives people the right to, literally, almost rob us, and the Governor is
simply saying that, if these people would settle for making twenty-five percent
rather than four hundred percent, we could live with it.
((Jack))
What’s
wrong with that? Cost of generating
power plus twenty-five percent?
((Dan
Schnur, Republican Political Consultant))
Because
it’s hypocritical, Jack.
((David
Freeman, Energy Advisor to Governor))
It’s
hypocritical?
((Dan
Schnur, Republican Political Consultant))
Let me just finish—
((David
Freeman, Energy Advisor to Governor))
Let me just make this point—
((Dan
Schnur, Republican Political Consultant))
Let me just
finish. Los Angeles Department of Water
and Power made more money than Reliant of Houston, made more money than
Williams of Oklahoma—
((David
Freeman, Energy Advisor to Governor))
That is not true—
((Dan Schnur,
Republican Political Consultant))
That is
absolutely true. That is fact, and my
point is, if you are going to defend the profits made by your former agency,
you have to recognize that these out-of-state generators are making precisely
the same argument. What’s good for the
goose has to be good for the gander.
((David
Freeman, Energy Advisor to Governor))
Well, they
all ought to be confined to what the Department of Water and Power got, which
is cost plus a fifteen percent return.
The out-of-state generators profits in the fourth quarter of last year
went from two hundred million to eight hundred million. Those are facts. The cost of electricity in the state went from seven billion
dollars to fifty billion dollars. That
is outrageous, and the Department of Water and Power supplies about five
percent of the power. The rest of it is
coming from these guys that are price gougers, but I don’t work for any of
these people. I work for the people of
California, and all we’re saying from this day forward is everybody, including
municipalities, will sell to us at cost and a reasonable profit to set an
example. What we want is the Republican
administration in Washington to join this effort by doing their job.
((Dan
Schnur, Republican Political Consultant))
And double the number of blackouts in California—
((David
Freeman, Energy Advisor to Governor))
It will have no—
((Jack))
You have
both run out of time like we’ve run out of electricity in California.
David
Freeman and Dan Schnur, thank you for joining us.
We’d like
to know what you think. Are you
comfortable with the Governor’s course of action thus far? Send us an email to capitolweek dot org….
And for the
latest on our energy crisis click on At issue, energy.
Melissa ?
END @
ISSUE
((Melissa))
Jack, one
question many at home have asked is, “how is the state shopping for power in
the first place?”
We went to
the energy air traffic control center, if you will, the California Independent
System Operator to find out.
CAL-ISO PROFILE
This
is the heart of Cal-ISO or the California Independent System Operator, ground
zero for the state’s energy needs…
((Gregg Fishman, Cal-ISO))
This is the highway.
This is like roadmap for electricity.
This ticker of sorts takes stock of up to the minute
megawatt needs, information for the operators that man this command center
twenty-four/seven…
And oversee the majority of the electricity grid crossing
the state
((Gregg Fishman, Cal-ISO))
There are megawatts of electricity literally traveling
across hundreds of miles of high voltage transmission lines at any given moment
in California. It’s our job to make
sure that they get where they’re supposed to go.
Security is tight at Cal-ISO. It was created after deregulation, a non-profit agency funded in
part by grid fees paid for by the three big public utilities…
While Cal-ISO doesn’t own the lines, it’s the referee of
sorts, playing traffic control and making sure that there is a balanced power
flow…
((Gregg Fishman, Cal-ISO))
We are, in some cases, purchasing power on the day ahead or
the hour ahead markets. Electricity
can’t be stored, so there’s this constant balancing act.
The spike in power prices led to several ongoing state
investigations, including one by Cal-ISO found on its web site.
The state, through the Department of Water, now funds most
purchases, but Cal-ISO makes a tough call to order blackouts…
If supply and demand is so imbalanced, not having a planned
outage could jeopardize the grid…
((Gregg Fishman, Cal-ISO))
Imperative as always, keep the lights on, and nobody here
likes to have to turn the lights off.
While
Cal-ISO makes a call when to order blackouts, utilities decide where they’ll
be…
Cal-ISO plans to give one hour warnings now before they turn
off the juice, and while they take the heat for ordering blackouts, lawmakers
feel it as well, backlash resulting from rising prices and power problems…
((Robert Hertzberg, Assembly Speaker))
This is kind of the tough price you pay in politics as you
go through tough times and as you make tough decisions.
Efforts
to enact price caps are underway, but are meeting stiff federal resistance…
Meantime, Cal-ISO continues to hunt for power as far as
British Columbia, and long, stressful days for hundreds of workers here
continue…
((Gregg Fishman, Cal-ISO))
This is
a twenty-four/seven operation, and when we’re in an emergency situation, we
bring in sandwiches to feed them, and, yes, you can leave your desk if you need
to use the restroom, but make it quick.
The
good news… …conservation is making a
difference. Fishman says it’s critical
when temperatures climb in the afternoons…
But
he knows that tough days are ahead, and hopes that extended blackouts, longer
than an hour, will be few and far between…
END
CAL-ISO PROFILE
DISCUSSION: RACIAL PRIVACY INTIATIVE
((Melissa))
How
lawmakers handle the energy situation and rising costs could make or break
future political careers…
Another
controversial issue in the state, race relations, could be decided at the
ballot box.
We’re
talking about the racial privacy initiative.
It’s
author, Ward Connerly, believes people should not have to check off boxes
indicating race on state and federal forms…
He says our
society defies box checking and is pushing a ballot measure to stop it…
Joining us
to share more:
The ballot
measure’s author,
Ward
Connerly, who is also a UC regent and chairman of the American Civil Rights
Coalition.
And
Michelle Alexander, attorney with the San Francisco chapter of the America
Civil Liberties Union.
Thank you
both for being with us, and, Ward, wants wrong with having to check up a box?
((Ward Connerly,
Racial Privacy Initiative Author))
Well, I
think our society has always aspired to be a colorblind society, and I know
we’re not there yet, but I think the aspiration is still valid. Thurgood Marshall, in 1954, when he was
arguing on behalf of the NAACP in Brown Vs. Board of Education said that
racial classifications and distinctions were odious. John F. Kennedy, in 1963, said race has no place in American life
or law. Martin Luther King said that he
wanted a world where his kids were not judged by color but by content of their
character.
((Melissa))
Michelle,
is that realistic? Are we in a society
today where people are not judged by the color of their skin?
((Michelle
Alexander, ACLU))
Unfortunately,
it’s not realistic at all, and I’m glad to hear that Mr. Connerly recognizes
that, and, as a result, this initiative is extremely premature. Nobody should be fooled by this
initiative. It’s not really about box
checking. It’s about whether or not it
would be possible to collect the information that necessary to identify and prove
discrimination where it exists. If this
initiative passes, it will be literally impossible for the Attorney General or
civil rights organizations to enforce existing civil rights laws. It will be a total disaster, and take us
back to a time when civil rights laws didn’t even exist in this state, when
people of color had no remedy when faced with employment discrimination or
housing discrimination or discrimination by the police. Now, we collect data all the time to enforce
the laws. We collect data about toxic
dumpsites; we collect data about diseases like AIDS because we recognize that
they’re problems that we have to address.
((Melissa))
So, Ward,
how do we get this information?
((Ward
Connerly, Racial Privacy Initiative Author))
Well, it’s
interesting that the civil rights establishment always thinks that the world is
going to come to an end when we propose something that is going to move us
forward. We exempt law enforcement; we
exempt the State Department of Fair Employment and Housing; we exempt medical
research, and I think that we can work out a lot of the other problems that
they see just as we did with 209. The
world didn’t come to an end, but I think the important thing is that we
continue moving forward trying to realize that goal of becoming a colorblind
society. This does not deal with
society by the way. This does not deal
with the federal government. This deals
with the government in California.
((Melissa))
Do we lose
information, for example, that reflects us and tells us who is living in
California, and is that—
((Ward
Connerly, Racial Privacy Initiative Author))
Census? This doesn’t affect the census at all.
((Michelle
Alexander, ACLU))
What it
does effect, though, is the ability of all public agencies to collect basic
data to identify problems of discrimination, identify places where people are
being treated unfairly, identify educational inequities that may exist, and the
exemptions that Mr. Connerly refers to will not address this problem. DFEH, the Department of Fair Employment and
Housing, is exempted under this initiative, but because employers won’t be able
to collect data, because public housing won’t be able to collect data, there
won’t be any data for DFEH to analyze in order identify patterns of
discrimination, and the fact that law enforcement would be exempted from this
initiative is really no comfort whatsoever.
((Melissa))
Let’s take
a step back, though, and look at relations in California. The latest census showed that there didn’t
appear to be a majority anymore. There
were lots of different groups that together say what it means to be Californian. Is that your goal, Ward? You don’t want people to think of themselves
as one classification, but more of a Californian-American, and is that
possible?
((Ward Connerly,
Racial Privacy Initiative Author))
That’s
right. I mean, in this state we no
longer have a majority of people based on these “races” anymore. We are all a collection of people melting
into each other. The government has no
capacity to look at me and tell me what I am, and they just automatically look
at me and say I’m African-American; I’m black, but they don’t know what my
heritage is, and they have no business trying to impute that, and so I think
that it’s time for us to say, “Get the government out of the business of
classifying it’s citizens,” and this initiative will provoke, I believe, if we
approach it in the right way, a long-needed, healthy debate about race. What is it?
Scientists have said that it really doesn’t exist. It’s a social construct, so I think we can
have that debate. I’m interested in
trying to find ways of dealing with the problem of discrimination. I think that the assertions are grossly
overstated, but the extent the Ms. Alexander and others believe that are what
I’d like to address. As for the
business of classifications, the government has no business classifying me.
((Michelle
Alexander, ACLU))
Again, I
think it’s important that people aren’t fooled into thinking that this
initiative has anything to do with the government assigning racial
classifications to people. That’s not
what this is about; this is about making sure that basic information that is
necessary to protect civil rights of all Americans is available to us and is
not hidden away and kept secret, taking us back to a time when it was
impossible to enforce laws against discrimination.
((Melissa))
In this day
and age, do we need the protection of Affirmative Action? In a perfect world, we wouldn’t, but do we
still need it today?
((Ward
Connerly, Racial Privacy Initiative Author))
No, I don’t
think so. As a private business, I can
ask you what your race is. If come to
me looking for a job, I can’t ask you, “What is your race? What about your ancestry?” Why should the government be able to ask
something that I can’t ask?
((Melissa))
Is it fair
to say, though, as a business owner that if certain business owners were not
required to hire certain races and genders that some folks that have a
prejudice would not?
((Ward
Connerly, Racial Privacy Initiative Author))
I am
required not to discriminate, and I don’t discriminate, but I can’t ask anybody
on an application or look at them and say, “What is your race?” So, this business that we can’t deal with
the discrimination unless we collect the data is, I think, a bunch of baloney.
((Melissa))
So, Michelle, you feel that—
((Michelle
Alexander, ACLU))
Absolutely. The notion that this information should be
kept secret and held from public view is extremely frightening. The reality is this is an extremist
initiative. It’s not supported by
progressives; it’s not supported by moderates; The Republican Party does not
support it. The reason that it’s not
going to qualify for the March 2002 ballot is that Mr. Connerly has not been
able to find supporters that are willing to invest in this initiative—
((Ward
Connerly, Racial Privacy Initiative Author))
That’s not
true. Come on, Michelle, that’s not
true.
((Michelle
Alexander, ACLU))
It is—It is—
((Ward
Connerly, Racial Privacy Initiative Author))
Speak from
fact, not from something you just think, and that’s just not true.
((Michelle
Alexander, ACLU))
Well, that’s what’s been reported in the papers, and—
((Ward
Connerly, Racial Privacy Initiative Author))
Well, use
your facts.
((Michelle
Alexander, ACLU))
—and here in California, people are tired of divisive and
racist initiatives. People want us to
solve the problem of discrimination, not hide from it, not run from it, not
pretend that it doesn’t exist—
((Melissa))
So, how do you think we should do that? If it’s not, say, a ballot measure that Ward
is proposing, is it a state or federal program?
((Michelle Alexander, ACLU))
Well, the way in which we solve the problem of discrimination is by collecting
information that makes it possible for us to identify inequities and address
remedies that are tailored to the problem that’s been identified. For example, in the area of law enforcement,
we know that people of color have been targeted by law enforcement on the basis
of race for unlawful stops and searches for a very long time. Unfortunately, here in California we don’t
have the data that is necessary to track and prove discrimination by the
police, and as a result, it is impossible to hold law enforcement
accountable. Fortunately, in the areas
of employment and housing and education, we do have much of the data that is
necessary for us to identify disparities where they exist, but this initiative
would erase that data forever, and make it impossible for us to remedy
discrimination when it appears.
((Ward Connerly, Racial Privacy Initiative Author))
It’s really unfortunate that the ACLU always take these
positions that anything that they don’t agree with is racist, and it’s
extremist. This initiative will be
passed by an 80% margin in my view, and to label it “racist” and “extremist” is
terribly disappointing. The fact is
that the ACLU supports preferences on the basis of race, and they know that
this initiative is going to cripple their ability to do that.
((Michelle Alexander, ACLU))
I want to clarify. I
did not say that Mr. Connerly is racist, but any initiative that will make
it impossible for people of color to protect their civil rights and to enforce
existing civil rights laws is extremely dangerous, and, yes, fortunately in
today’s society that is extremist, and it isn’t supported by a broad cross-section
of people in California.
((Melissa))
We’re in our final few moments, and, Ward, are you concerned
about a backlash, or are you hoping that this furthers the dialogue on race
relations in California.
((Ward Connerly, Racial Privacy Initiative Author))
There’s no backlash.
We shouldn’t fear having a nice discussion about race in America. We talk about it all the time, and I think
it’s terribly disingenuous to say that it’s divisive. What’s divisive is the current paradigm, and we shouldn’t fear
having a healthy dialogue about race.
It affects us in so many ways, and let’s be honest about it; let’s be
intelligent about it; let’s be rational; let’s not be so prone to call people
names. I don’t think it’s going to
divide us at all. I think it can bring
us together.
((Melissa))
And, unfortunately, on that note, we are out of time.
We want to thank Michelle Alexander with the ACLU for
joining us, and, also, Ward Connerly for taking the time to discuss this with
us…
Jack?
END RACIAL PRIVACY INITIATIVE DISCUSSION
((Jack))
Melissa, back to the energy crisis that has gripped the
state…
It is the focus of a special edition of Frontline
immediately following our program on KVIE Channel 6 at 7:30 p.m…
Take a trip to the so-called “Energy Alley” and find out who
the bad guys really are…
Also, what do our leaders have to say about a problem that
may affect the nation?
((Melissa))
Jack, you won’t want to miss it. Frontline’s “Blackout” is next.