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States Win Energy Dereg Fight in Court

 

http://www.progressivestates.org/dispatch

Thursday, December 14, 2006

Growing Economy

States Win in Court Case to Recoup Electricity Dereg Losses

The Ninth Circuit Court of Appeals ruled in favor of California, Washington, and Nevada consumers in two cases relating to energy deregulation and price manipulation during the energy crisis at the beginning of this decade. As the New York Times reported, the three judge panel "took the Federal Energy Regulatory Commission to task for refusing to even consider whether ... customers may have been gouged by Enron and other energy traders."

The move is a major victory for consumers and for states. It is now well-known that Enron and other companies took advantage of utility deregulation to manipulate markets and gouge consumers. The manipulation was no coincidence. Enron waged a massive campaign to lobby state legislators to embrace the deregulated framework that would allow the company to manipulate markets and gouge consumers.  Under the court's decision federal regulators will be required to reconsider whether consumers were extorted. If so, individuals in these states may be able to get out of long-term contracts signed during the manipulations.

Unsurprisingly, the energy industry is crying that the sky is falling. The Times picked up their spin a bit describing the on-going fight over energy deregulation as a choice over "over whether to push ahead with competitive markets."

Yet, "deregulation has not worked as envisioned in any of the 20 states that have undertaken it," said Kenneth Rose, an Ohio energy consultant who advises state utility regulators, in a Washington Post interview earlier this year.   Consumers have seen rate increases, blackouts and a loss of public accountability by formerly public utilities.

So while a few energy executives are upset over the Appeals Court decision demanding new regulatory accountability for price gouging by utilities, it's reason for the rest of us to be cheering.

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Strengthening Communities

MA & DC: Green Building Standards for the Private Sector

For once, there is a race to the top, not bottom, for environmental standards.  Boston, MA and Washington D.C. are in a race to see which will be the first major city to adopt green building standards for private developers. 

In November, Washington D.C. announced its intention to require private developers build environmentally friendly projects incorporating energy-saving measures by 2012.   Under the proposed legislation, within two years, all new District-owned projects would have to meet the green standards.  By 2009, any building receiving more than 20% public financing would have to abide by the same standards.  By 2012, every new commercial building over 50,000 square feet would have to meet the guidelines.  The proposal is under review and is expected to get final approval by the D.C. Council sometime this month. 

Meanwhile, city officials in Boston, MA announced this week that they will also require ALL large private developers to adhere to a strict set of green building standards.  City officials are asking the Boston Redevelopment Authority to incorporate green building standards into municipal zoning laws.  The City will not issue permits for all projects of 50,000 square feet or more without adherence to the green building standards. 

Green building standards have been set by the U.S. Green Building Council, based on the Leadership in Energy and Environmental Design (LEED) Green Building Rating System, which is the national benchmark for the designing, constructing, and operating of green buildings that increase energy efficiency and lower long-term energy costs.    While under the Boston proposal, the certification process will be easier than the LEED process, the environmental standards will be almost the same.  While several states have adopted these Green Building standards for government buildings, Boston or Washington D.C. will be the first major city to adopt the standards for private builders.

Green building is a way to ensure that energy efficiency, water conservation, and better air quality are taken into consideration from the very beginning of a project.  By saving money on energy costs, green buildings are "smart growth" through and through.

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Valuing Families

IL: Policies to Bring Immigrants into Economic Mainstream

While the Feds and some states are taking a blunt tool approach to immigration reform, through worksite raids and immigrant profiling, Illinois is embracing its immigrant community.  Two task forces, created by Governor Rod Blagojevich, have proposed a "first of its kind" package of reforms to help the 1.7 million foreign born residents of Illinois, and their 1.5 million children, better integrate into American society.

The recommendations from the New Americans Policy Council and the state Interagency Task Force were developed by business, religious, and community leaders and state and national immigration experts.  They include:

  • English learning programs administered by community colleges, businesses, educators and immigrant activists
  • Welcome centers to ensure immigrants are aware of available services, like health care, employment, housing and language education.
  • Jobs programs to help highly educated and skilled immigrants transfer their professional skills to jobs in their chosen fields
  • Setting criteria for document translation to determine which documents should be translated into which languages.

A barrier standing in the way of these recommendations is a request for $25 million in state funds to implement them.  As the Chicago Tribune reports, Gov. Blagojevich endorses the recommendations, but has not yet committed the funding.  But, the investment could pay for itself in terms of economic and job growth.

As reported in the Chicago Sun-Times, both the New American's Advocacy and Policy Office and the Illinois Coalition for Immigrants and Refugee Rights found that immigrants drive growth in the state's labor force in both low and highly skilled jobs.  Immigrants make up almost 13% of the Illinois population but account for 17% of the workforce and more than 27% of workers with doctoral degrees.  And, investing in English education, for instance, has indirect benefits.  It can increase parental involvement in schools and open up new job opportunities.  Immigrants who speak English earn 50% more than those who don't.

11 states have offices that help tailor services to immigrants.  But, if it goes through with these recommendations, Illinois will be a leader in helping immigrants integrate and obtain necessary services. 

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Research Roundup

No Evidence of Voter Fraud, Highway Privatization, Gains from Plug-in Hybrids, and Brookings Metro Year in Review 

All the rightwing agitation around "Real ID" laws and other punitive voter identification laws have lacked one critical element: any real evidence of voter fraud, a point Tova Wang of the Century Foundation makes in this analysis.  As she notes, all the publicity around supposed fraud comes despite the fact that even rightwing "fraud watch" outfits have not come up with a single case of documented voter fraud for the 2006 election.

As we've detailed, Indiana's Governor has been pushing massive privatization of public services and highways, and Mother Jones has written an indepth expose of the national trend towards the alliance of corporations and rightwing politicians selling off U.S. highways.  They include a state-by-state tally of highway privatization projects being proposed.

You might think that having millions of "plug-in hybrid" automobiles add to electricity use every night would add further strain to an aging electrical grid dangerously prone to blackouts.  However, as an upcoming report (highlighted in Technology Review) from the Pacific Northwestern National Laboratory (PNNL), a Department of Energy lab, explains, most companies maintain excess energy capacity for high-demand daytime use, so plug-in hybrids charging up at night could balance demand and make it easier for utilities to afford purchase of cleaner energy sources.

In their Year End Review, The Brookings Metropolitan Policy Program highlights major trends, such as the rise in poverty in the suburbs relative to central cities, the high costs of transit that undercut the supposed affordability of housing in the exurbs, and the rising minority and immigration populations in new growing suburban areas.

Eye on the Right

Energy deregulation has been a honeypot of campaign corruption for politicians looking for handouts from utilities and other financial and energy players.  From the mid-1990s onwards, tens of millions of dollars in lobbying and campaign contributions swept through state legislatures pushing electricity deregulation.  While the Ninth Circuit court decision emphasize the need for better energy policy in the states, they also emphasize why public financing of elections would pay for themselves almost instantly in saving consumers from the costs of special interest deals tied to campaign finance corruption.

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Masthead

The Stateside Dispatch is written and edited by:

Nathan Newman, Policy Director
Mijin Cha, Policy Specialist
Adam Thompson, Policy Specialist
Matt Singer, Communications Director

Suggestions

Please shoot me an email at msinger@progressivestates.org if you have feedback, tips, suggestions, criticisms, or nominations for any of our sidebar features.

Matt Singer
Editor, Stateside Dispatch

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