Chapter 437: Enron Group!
"Mr. Yang, Mr. Andy Marsch, we in California are very welcoming companies with a good sense of responsibility to participate in the power system, and I also hope to see this power crisis pass as soon as possible. Governor Davis said: "California will get approval for the fuel cell power plant through Prager Energy as soon as possible, and will also urge this acquisition to be completed as soon as possible." ”
Davis has also received a lot of complaints and pressure due to this power crisis, and he also wants to end this crisis as soon as possible.
"Thank you, Governor Davis, for your support. Yang Jie nodded.
After the meeting, Yang Jie did not leave, but came to Davis's office for a conversation.
"Mr. Yang, thank you very much for your help this time, and now I am really disappointed by Enron, AES, and Reliant. ”
"Now these companies are colluding to secretly implement a number of strategies to control the electricity price market, including power washing, because the California energy market allows energy companies to charge higher prices for electricity produced outside of California," Davis said. These energy companies have deliberately inflated the price of electricity by making it look like the electricity they sell in California is being produced from outside California......"
Governor Davis then gave Yang Jie a specific introduction to other plans for these energy companies to raise electricity prices, including an over-quota plan, there is a connection line between California's North and South power grids, and this time Enron traders deliberately overbooked the line, deliberately saving more power lines than they actually need, which can cause power line blockage.
The fact that the state of California will have to pay Enron a "blockage fee" to alleviate the blockage of vital power lines in order to understand that the power crisis must be resolved is illusory and is a loophole in California's financial incentives to ensure that electricity providers solve the blockage problem.
In addition, California electricity wholesalers buy electricity in California at prices below the cap and sell it to other states, resulting in a shortage of electricity in the state.
Under California's free-market rules, Enron was allowed to set prices arbitrarily, and illegally closed natural gas pipelines in California, further driving up the price of natural gas, deliberately creating an unusually high electricity price.
"The Enron group has a lot of energy, they lobbied the Federal Energy Governance Council, and this time I asked the Federal Energy Governance Commission to investigate and supervise the Enron group and other three companies to control the electricity price, and they didn't have any reaction at all, and they didn't plan to adopt a serious move against the Enron group. ”
Davis said hatefully: "I've asked the Californian side to propose to the Federal Energy Regulatory Commission to set a $90/MWh wholesale electricity price for California!"
Southern California Edison and Pacific Gas & Electric used to produce 3 cents per kilowatt-hour of electricity, but now they have to pay 11 cents, 20 cents, 50 cents or more to buy one kilowatt-hour of electricity in the market, but they can't sell more than 6.7 cents per kilowatt-hour of electricity to retail customers, and now they lose more than 40 cents per kilowatt-hour of electricity.
Davis said with a fire in his eyes: "I have interviewed several energy suppliers such as Enron, but the results have not been effective at all. Now, the heads of these energy companies are sitting with Vice President Dick Cheney to draft a national energy strategy to promote the development of natural gas energy and continue to drive up the price of natural gas. ”
Yang Jie also sighed in his heart when he heard this: the reform of such an important area as public utilities should be solemn, from September 1996 when the California Legislature passed the deregulation of electricity bill after design, bidding, formation, site selection, system development and testing to April 1998 began to run, a total of only 18 months of time, for such a pioneering project, the time is too hasty, there is no establishment of a professional and strong regulatory team, the development of a complete set of market rules and system operating procedures, and strict supervision and rapid response to emergencies, the abuse of market power, to have effective prevention and mitigation measures.
It is precisely because there are all kinds of loopholes in the middle, but several energy companies have taken advantage of the loopholes, joined hands to control the wholesale electricity price, and directly killed and disabled the three major power companies in half a year, and these energy companies are making a fortune, and Governor Davis has also encountered considerable pressure, no wonder he is angry.
"Mr. Yang, tomorrow I will negotiate with officials from California and officials from the Clinton Treasury Department and executives of energy companies, and I am going to add Prager Energy to the list of people who will also participate in the negotiations. Davis said.
"Governor Davis, what is the important content of this meeting?" Yang Jie asked.
"I got the news from a friend in the Treasury Department that Assistant Secretary of the Treasury Wilson, who is in charge of public affairs, is preparing for the passage of gas by Treasury officials and energy business executives, preparing an environmental study to suspend the construction of new power plants and a smaller price increase to prepare for a long-term electricity contract. ”
Davis said angrily: "These energy companies want to control the wholesale price of electricity in California for a long time, and they also want to take this opportunity to put on a batch of highly polluting power stations, I will not approve it!"
In the afternoon, Yang Jie also dined with Governor Davis in a restaurant. During the meal, Marsch also talked to Davis about Prager Energy's field survey of the San Francisco Bay Area and other cities where the power gap is severe, to determine the true demand for power supply in each area, and then arrange the number of fuel cell power stations, and the company has purchased 500 10-megawatt fuel cell stacks from Huaxing Fuel Cell Power, and the first batch of 400 megawatt fuel cell stacks has been shipped by cargo planes, for which it has also chartered four cargo planes.
Once in the U.S., the fuel cell stacks will be assembled and commissioned at a factory in San Francisco, and at least five 10-megawatt fuel cell small power plants can be assembled within a month.
These small fuel cell power stations are highly integrated, a container-sized power station can generate up to five trillion yuan, and the booster, inverter and management control system are integrated in one box, which occupies a very small area, and can be easily integrated into the three-phase four-wire power supply grid in California, which is very fast to arrange, and does not need to build a large fuel cell power station.
"Mr. Yang, you're really fast!" Davis said with a sigh.
"Governor Davis, I'm looking forward to resolving this power crisis in California as quickly as possible. Yang Jie said.
Davis was about to speak, when a burly middle-aged man strode over, the green pupils in his eyes shining with a clear light, and he looked extremely arrogant.
"Governor Davis, I didn't expect to see you here. The man walked over and said loudly.
Yang Jie also turned his head to look at the man, but the appearance of the man in front of him was blended with the vice president of Enron Group in the photo, Jeffrey Skilin.
Why did this guy come over? Yang Jie also had doubts in his heart.
Jeffrey Skilin's sharp eyes swept over Yang Jie's face, and then narrowed: "Presumably this is Mr. Yang from Huaxia Kingdom, but I heard that you want to buy Pacific Gas and Electric Company and Southern California Edison Electric Company? As a native American, I want to advise you, it is a clumsy decision that you want to be Governor Davis's helper!"
"Jeffrey Skiling, this Mr. Yang is my guest, and I won't allow you to be so rude!" Davis said with a glint of anger in his eyes.
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