July 14, 2025 Breaking News, Latest News, and Videos

Why Consumers Won’t Get Much Of Dynergy’s Millions:

There was applause from environmentalists when Gov. Jerry Brown and the state Public Utilities Commission late last month accepted a $120 million settlement from NRG Energy, Inc., for the part it and the bankrupt former electric generator Dynegy, Inc., played in the power crisis that afflicted California 11 years ago.

To be paid over four years, that settlement will see NRG spend 80 percent of the money on a network of electric car charging stations along major highways and in the state’s biggest cities. Only 20 percent will go to consumers in the form of very small rate reductions.

Few questioned any of the deal, even though electric customers bilked during the crisis will get mere pennies back for this part of the many dollars the cheating Dynegy stole from them. (New Jersey-based NRG six years ago bought out Dynegy’s interest in two California power plants. Dynegy paid consumers $281 million in a previous settlement.)

Despite numerous attempts to get his explanation, Brown has yet to offer a rationale for spending most of the money on charging stations rather than refunding it to myriad cheated customers. The best his office has offered was this from spokesman Evan Westrup: “$100 million to expand the state’s clean energy infrastructure is good news for all Californians.”

Altogether, Dynegy caused an estimated 10 percent of the $9 billion in overcharges California electric customers paid during the crunch because of illegal market manipulations by Enron, Dynegy, Reliant Energy, Williams Energy, Mirant and other firms, most of them based in Texas. Including this settlement, it has paid back about $400 million.

So Brown endorses a deal that gets consumers little, while leaving Dynegy’s successor the owner of 200 full-service charging stations. Another 1,000 smaller charging facilities will go into commercial buildings and apartment or condominium complexes.

The best explanation of why this money will go to electric car chargers comes from Frank Lindh, the utility commission’s general counsel. In a telephone interview, he said refusing this settlement would risk eight more years of legal wrangling, with the possibility Californians could end up with nothing.

The chargers, he said, are what NRG offered, “and I think it’s the best we can do here.” For sure, the Federal Energy Regulatory Commission – which would hear any further case – has never approved a full refund of illegal gains by any electric generating company.

Meanwhile, the new chargers will likely spur more use of electric cars in California. The question is whether the PUC should have pressed its refund demands or accepted this kind of subsidy for a new sort of infrastructure. No one ever subsidized America’s gigantic network of gasoline stations. No similar largesse is yet going to anyone building hydrogen fueling stations for what many believe will be a coming generation of H2-powered cars and trucks.

It’s certainly possible to see this use of money as a form of theft. In virtually any other settlement for corporate wrongdoing, most of it would go back to those who were cheated. Residential ratepayers saw their monthly electric bills rise by an average of more than $10 per month during and after the crisis of 2000 and 2001, when then-Gov. Gray Davis was essentially blackmailed into accepting electric power supply deals at exorbitant prices rather than risk years of blackouts and brownouts. That was what the crooked generating companies threatened in their heyday, before many of their executives were later convicted for their complex cheating.

It’s also true that today’s limited number of electric car and plug-in hybrid models sell for many thousands of dollars more than comparable gasoline-powered cars. So cheated ratepayers will now subsidize the wealthy who can afford those cars.

Complained Steve Frank, the former head of the conservative California Republican Assembly and a persistent Brown critic, “(Brown) has stolen $100 million belonging to the people of California to buy a wasteful, unneeded personal toy… Brown has decided to misuse our money for his bad dream policies.”

Actually, Brown didn’t arrange the NRG/Dynegy settlement, even if he did announce it in the same press release as his executive order demanding that state officials work with private companies to get 1.5 million electric cars on the road by 2025. The PUC did that.

But Brown appointees, like Air Resources Board Chair Mary Nichols, hailed the action. “This…will clean our air, lower greenhouse gas emissions and reduce our dependence on imported oil,” she said. Added PUC Commissioner Mike Florio, a former consumer advocate, “This creative deal…propels us down the road to a clean transportation future…”

But the people who were cheated will not be repaid by this settlement. The bottom line is that no one will ever know if Lindh and the PUC are correct about this being the best that could be done.

in News
<>Related Posts

Veterans Tech Group to Launch Los Angeles Chapter with Networking Event

July 14, 2025

July 14, 2025

Founded in San Francisco, VetsInTech operates 20 chapters nationwide and claims more than 60,000 veterans VetsInTech, a national nonprofit that...

Film Review: Jurassic World: Rebirth

July 13, 2025

July 13, 2025

“The story is simplistic and predictive, and that’s all it needs to be, because the age-old battle to survive the...

Santa Monica Assault Suspect Faces Multiple Charges, Authorities Seek Additional Victims

July 13, 2025

July 13, 2025

Marbra allegedly assaulted a 52-year-old woman on the Strand in Santa Monica, facing a felony count of assault with intent...

SM.a.r.t.Column: Does the Rand Corporation have a future in Santa Monica?

July 13, 2025

July 13, 2025

“Although no one said it outright, it is clear to all that RAND is feeling—and will continue to feel—the impact...

County Health Leaders Decry Federal Policy Barring Undocumented from Programs

July 12, 2025

July 12, 2025

The officials argued the policy jeopardizes care for all residents, noting it could deter people—regardless of status—from seeking treatment  Leaders...

County Supervisors Move to Preserve Measure J Amid Charter Error

July 12, 2025

July 12, 2025

Measure J mandates that at least 10% of the county’s locally generated, unrestricted funds be allocated to community investments like...

LA Medical Center Seeks Help Identifying Unconscious Patient

July 12, 2025

July 12, 2025

He has been unconscious since admission, and staff have been unable to determine his identity Los Angeles General Medical Center,...

Mayor Bass Issues Directive to Protect Immigrant Communities

July 12, 2025

July 12, 2025

The order expands access to city resources for affected families and requests records from ICE, including details on arrests Mayor...

Downtown Santa Monica CEO Andrew Thomas to Step Down

July 11, 2025

July 11, 2025

Thomas, who rejoined DTSM, Inc. in 2022, oversaw the introduction of a private security program, expanded homeless outreach, and boosted...

Conservancy to Tour Historic Miles Playhouse at State of the City Event

July 11, 2025

July 11, 2025

Built in 1929, the Miles Playhouse serves as the centerpiece of Lincoln Park The Santa Monica Conservancy will offer 15-minute...

Sen. Ben Allen Highlights Challenges, Economic Gains for LA28 Olympics

July 11, 2025

July 11, 2025

The remarks came during the first informational hearing of the Senate’s Special Committee on International Sporting Events State Sen. Ben...

(Video) Summer Camp at School of Rock West LA Turns Kids Into Rockstars

July 11, 2025

July 11, 2025

To Sign Up Now, Go To Schoolofrock.com Summer Camp at School of Rock West LA Turns Kids Into Rockstars To...

L.A. Louver Marks David Hockney’s 88th with Exhibit

July 11, 2025

July 11, 2025

Hockney, a British artist born in 1937, gained fame with the British Pop Art movement and later became known for...

Suspect Arrested in Shoe Retail Theft Spree Across LA County

July 11, 2025

July 11, 2025

During the search, police recovered two firearms and a significant quantity of merchandise The Los Angeles Police Department’s Organized Retail...

Suspect Arrested in Santa Monica Pier Arson Incidents

July 10, 2025

July 10, 2025

The suspect, matching video footage from an arcade, was taken into custody Santa Monica Police Department officers arrested a suspect...