PUHCA repeal: Exponential Enrons Ahead

[phantom power]

One of the least-discussed provisions in the Bush energy bill that has passed the House and is now fast-tracked in the Senate is PUHCA repeal. "Pooka repeal," you say, "what's that?"

The Public Utilities Holding Company Act (PUHCA) is a cornerstone New Deal financial reform signed into law in 1935. It was the biggest battle in FDR's first term. Utilities had become cash cows for power moguls who created complex holding company pyramids for milking ultra-reliable ratepayer income to feed speculative investments. The crash of 1929 knocked these structures flat and took down millions of small investors who had been sold on the reliability of utilities as an investment.

Does any of that sound familiar?

Both the House and Senate versions of the energy bill now contain the PUHCA repeal provision. At the insistence of Democrats, the Senate added in some extra oversight by FERC (Federal Energy Regulatory Commission), but it is a thin reed compared to PUHCA.

Supporters of PUHCA point out that for 50 years, we have had reliable, cheap electric power that has allowed strong economic growth, and that no PUHCA-regulated energy holding company has ever gone bankrupt. Furthermore, it was partial PUHCA repeals in the 1990s that opened the door to Enron, Westar and other energy debacles. To repeal PUHCA now is equivalent to blowing up the barn after the horses have escaped, never mind shutting the barn door.

http://www.truthout.org/docs_2005/062305A.shtml

[CAcyclist]

1. As Goes California, So Goes The Country

One small silver lining might be that we Californians got pissed and did everything we could to lower our energy usage just so the greedy power companies would get less of our money.

We ended up so efficient that we haven't had any blackouts or brownouts for a long time.

If the rest of the country can get that pissed, we could launch a whole new industry in solar and renewables and I would just bet a light would get turned on in people's heads and they'd start to question their "need" for driving their car everywhere, too.

[Coastie for Truth]

2. All those illegitimati want to do is pull big money out very short term

the hell with service. And the FERC Chairman is Bush buddie and Enron's former lawyer, Pat Wood <>, from his

"He has worked as an engineer with Arco Indonesia and as an attorney with the Baker & Botts law firm in Washington, DC.

"ARCO Indonesia" --- duh!

"Baker & Botts law firm" - the "Baker" in "Baker & Botts" is Bush and House of Saud and Enron consigliere Jim Baker. Talk about cronyism and "Friends of George".

Talk about the fox guarding the hen house.

[struggle4progress]

3. Bad news. The Thuglicans have been aiming at this for a decade.