Cheney Suppressed Evidence in California Energy Crisis
By Jason Leopold
t r u t h o u t | Investigative Report
In-depth investigation shows how Vice President Dick Cheney pressured federal energy regulators to conceal evidence of widespread market manipulation by energy companies during the California electricity crisis in 2001.
In March 2001, while California's two largest utilities were teetering on the brink of bankruptcy, and the state's electricity crisis was spiraling out of control, Vice President Dick Cheney summoned Curt Hebert, the chairman of the Federal Energy Regulatory Commission (FERC), to his office next to the White House for a hastily arranged meeting.
Cheney had just been informed by his longtime friend Thomas Cruikshank, the man who handpicked the vice president to succeed him at Halliburton in the mid-1990s, that federal energy regulators were close to completing an investigation into allegations that Tulsa, Oklahoma-based Williams Companies and AES Corporation of Arlington, Virginia had created an artificial power shortage in California in April and May of 2000 by shutting down a power plant for more than two weeks.
Cruikshank was a member of Williams's board of directors, and perhaps more importantly, had been one of many energy industry insiders advising Cheney's energy task force on a wide-range of policy issues, including deregulation of the nation's electricity sector, that would benefit Williams financially.
Cruikshank informed the vice president he had learned about the preliminary findings of FERC's investigation during a Williams board meeting earlier in March 2001. FERC, Cruikshank told Cheney, was in possession of incriminating audio tapes in which a Williams official and an AES power plant operator discussed keeping a Southern California power plant offline so Williams could continue to receive the $750 per megawatt hour premium for emergency power California's grid operator was forced to procure to keep the lights on in Southern California.
(Continued here.)
t r u t h o u t | Investigative Report
In-depth investigation shows how Vice President Dick Cheney pressured federal energy regulators to conceal evidence of widespread market manipulation by energy companies during the California electricity crisis in 2001.
In March 2001, while California's two largest utilities were teetering on the brink of bankruptcy, and the state's electricity crisis was spiraling out of control, Vice President Dick Cheney summoned Curt Hebert, the chairman of the Federal Energy Regulatory Commission (FERC), to his office next to the White House for a hastily arranged meeting.
Cheney had just been informed by his longtime friend Thomas Cruikshank, the man who handpicked the vice president to succeed him at Halliburton in the mid-1990s, that federal energy regulators were close to completing an investigation into allegations that Tulsa, Oklahoma-based Williams Companies and AES Corporation of Arlington, Virginia had created an artificial power shortage in California in April and May of 2000 by shutting down a power plant for more than two weeks.
Cruikshank was a member of Williams's board of directors, and perhaps more importantly, had been one of many energy industry insiders advising Cheney's energy task force on a wide-range of policy issues, including deregulation of the nation's electricity sector, that would benefit Williams financially.
Cruikshank informed the vice president he had learned about the preliminary findings of FERC's investigation during a Williams board meeting earlier in March 2001. FERC, Cruikshank told Cheney, was in possession of incriminating audio tapes in which a Williams official and an AES power plant operator discussed keeping a Southern California power plant offline so Williams could continue to receive the $750 per megawatt hour premium for emergency power California's grid operator was forced to procure to keep the lights on in Southern California.
(Continued here.)
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