Let’s see, how can we blame Enron for this?

enron_logo2.jpgOne of the enduring myths of this era of criminalizing business practices is that Enron’s energy trading policies were one of the primary causes of California’s power crisis during the early part of this decade.
Well, with Enron gone, that myth is not going to hold up this time around if what James D. Hamilton predicts comes to pass:

California may again offer the nation a useful illustration this summer of how not to deal with an energy crisis.
California Energy Blog last month passed along the warning from the Federal Energy Regulatory Commission that the southern half of our state is in “the worst electricity supply situation in the entire country.” I’m not worried about it, though, because I know that the California Energy Commission has been working for five years to come up with a plan.
And here it is, in all its glory: the fifth annual installment of the flex your power now! campaign. In the Commission’s own words, here’s how it works:

Pitch in this summer, California. When you hear the “Flex Your Power NOW!” alert, immediately conserve energy. Learn more about what to do when you hear the alert.

But the really cool thing is the “Conserve-O-Meter”. Go ahead, I’ll wait here while you check it out.
And thus we continue in the great tradition of California regulators, who seek with great diligence, earnestness and, dare I say, ingenuity, to try to balance supply and demand every day by telling each one of us exactly what we need to do. As long as we all maintain the proper spirit and check up on the Conserve-O-Meter as the day progresses, I’m certain that all Californians can be counted on to do the right thing, ensuring the equality of supply and demand as a result of conscientious attention to civic duty.

No fan of Lerach

Lerachenrondocs150ap4.jpgIn this NY Times op-ed, Joseph Nocera tees off on the lead Enron class action securities fraud plaintiffs’ lawyer, William Lerach, who has his share of troubles these days (noted here and here). After noting Larry Ribstein’s compliment of Mr. Lerach’s complaint against Enron and its investment banks (although I suspect that’s not all Professor Ribstein observed to Mr. Nocera regarding Mr. Lerach and securities fraud class actions), Mr. Nocera lays the wood to Mr. Lerach:

While I have no way of knowing whether Mr. Lerach is innocent of the charges he may soon face – or whether the investigation is politically inspired – I do know that Mr. Lerach is hardly a candidate for canonization. For much of his career, he made his living playing a dirty game.
He would watch for the stocks of companies to drop, especially volatile high-technology stocks that missed their earnings estimate, and then he would round up a small shareholder like Mr. Lazar and race to the courthouse to be first in line to file a suit seeking class-action status. And then, usually with little else to go on, he would essentially torture the company with discovery motions and deposition requests and legal filings until it finally settled to make him go away.
And he was so gleeful about it! And so taunting! And so vindictive! He sued 3Com five times. Intel, too. He would tell executives of the companies he was suing, “I’m going to take away every penny you own.” Once when Alan Shugart, the C.E.O. of Seagate Technology, which was being sued by Mr. Lerach, started a campaign against “abusive litigation,” Mr. Lerach sent him a note that said, “Dear Al: More is coming.”
John Doerr, the Silicon Valley venture capitalist, has called Mr. Lerach “a cunning economic terrorist.”

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