----- Original Message -----
Sent: Friday, January 12, 2001 9:27 AM
Subject: California GRID-LOCK May Bring U.S. Economy to a Standstill
AIPL Exclusive
by RJ Lewis
Registered Commodity Trading Advisor
January 12, 2001
The electrical grid-lock in California could spread to the rest of the Western power grid if Pacific Gas and Electric is unable to rectify their problems, AIPL has learned. The problems we are now seeing are just the tip of the proverbial iceberg. Redundant systems are now beginning to fail, hence the implementation of stage 3 alerts up an down the western seaboard. If the grid fails, it could knock out the largest economy in the U.S., and the 9th largest in the world. It could very well push the economy of the U.S. over the edge.
The problems do not stem from some conspiracy theory, but rather from a system that has been deregulated, which was never designed to be deregulated. Some services and industries just do not respond to free market rules - such as public utilities.
Healthcare, air transportation, telecommunications, and now electrical power are all victims of capitalistic cronyism gone wild. The results have been a patchwork quilt of products and services, many of which simply do not work.
Deregulation of the power industry has done to it what HMOs have done to healthcare. As the demand for power continues to increase, instead of adding capacity, industry fat-cats have decided to swap power on the open market. This is a very short sighted solution to a long term problem and will spell disaster for many smaller utility companies and cooperatives.
California is not the only state at risk. Michigan, Illinois, and New York top the list as the most vulnerable to deregulation and resulting power disruptions. Sustained problems will definitely put an additional drag on the economy which has now entered a period of recession, say many economic analysts. This could lead to a deepening of the recession or drive the economy straight into the ground.
Utility costs have risen as much as 500% in some areas of the country. This has put marginal businesses and consumers on the ropes. Many elderly and fixed income households have had to curtail electrical usage simply because they cannot pay. One elderly woman in Los Angeles lives on less than $1000 per month, yet her electrical bill last month was $512.
Silicon valley is especially vulnerable since power to drive the 'new economy' has risen by a third over the past 10 years. Some smaller companies, such as Internet Service Providers, who pay retail for their power are not able to survive in the competitive environment of information technology. Many are just closing their doors and calling it quits.
The private sector has been hamstrung by the Department of Energy and the EPA in developing new electrical generating capacity. The technology exists in abundance, but bureaucratic bungling has stifled any meaningful advances in power generation technology, especially small scale nuclear, fuel cell, and biomass.
If solutions are not forthcoming soon we may very well find ourselves literally in the middle of a new dark age.
Dr. Rod Lewis is a professional investigative researcher and journalist. He has a background in health science, research, and psychology. He has spent most of his continuing professional education studying forensics, emergency management, mass disaster relief, and preparedness issues. He has been a Commodity Trading Advisor since 1990. He has been publishing AIPL Communiqué©, Journal of the Agence Internationale de Presse Libre (International Free Press Agency), an intelligence digest, for 7 years, and has hosted and been a guest on numerous radio programs. He has spoken around the country on a number of topics, principally the National Security State. He is a member of a number of organizations devoted to liberty and freedom. Dr. Lewis also has business interests in alternative energy.
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