Former Enron Executives Slated to Receive Taxpayer Handouts

[baby_bear]

http://www.citizen.org/pressroom/release.cfm?ID=1960

<snip>
Senate Energy Bill Contains Provision for Hundreds of Millions of Dollars
in Loan Guarantees for Power Project

WASHINGTON, D.C. – Buried in the 700-plus page energy bill currently under debate in the U.S. Senate is a provision that provides hundreds of millions of dollars worth of federal loan guarantees for a power project apparently to be built by four former Enron executives. One of the former executives is Thomas White, former head of Enron’s retail and energy trading in California during the energy crisis who later served as President Bush’s Secretary of the Army.

...
Title XIV, Section 1403(c)(1)(B) of the Senate energy bill provides federal loan guarantees for “a project to produce energy from coal … mined in the western United States using appropriate advanced integrated gasification combined cycle technology that minimizes and offers the potential to sequester carbon dioxide emissions and … shall be located in a western State at an altitude greater than 4,000 feet.”
...
Public Citizen’s investigation to find out who this loan would benefit narrowed the answer to just one company: Houston-based DKRW Energy. This company, named after the four Enron executives that founded it – Jon C. Doyle, Robert C. Kelly, H. David Ramm and White – formed a subsidiary, Medicine Bow Fuel & Power, to develop a $2.8 billion coal gasification project in Medicine Bow, Wyo. The DKRW facility meets all the criteria required in the legislation: The coal will be supplied from Arch Coal mines neighboring the power facility; it will stuff carbon dioxide emissions into oil wells; and the facility will be located in a western state (Wyoming) at an altitude above 4,000 feet.
...
The federal loan guarantee makes taxpayers responsible for repaying the loan if the company defaults, or if the project ends up not being economically feasible after its construction. The provision states that if an energy company receiving such a loan guarantee defaults on that loan, the bank to which the loan is owed “shall have the right to demand payment of the unpaid amount from the Secretary” of Energy. Therefore, taxpayers hold all the risk while energy companies reap all the rewards.

</snip>

This is reprehensible.

I am going to write to my senators right now.

b_b

[fooj]

1. I'm a Native Californian! Over my dead body!

:grr: :grr: :grr: :grr: :grr: :grr:

[baby_bear]

2. Here's what I wrote to my senators

Dear Senator _____

I just came across an article by Public Citizen that describes a terrible piece of "pork" in the energy bill before the Senate. Here is an excerpt:

"Title XIV, Section 1403(c)(1)(B) of the Senate energy bill provides federal loan guarantees for 'a project to produce energy from coal … mined in the western United States using appropriate advanced integrated gasification combined cycle technology that minimizes and offers the potential to sequester carbon dioxide emissions and … shall be located in a western State at an altitude greater than 4,000 feet.'

"Public Citizen’s investigation to find out who this loan would benefit narrowed the answer to just one company: Houston-based DKRW Energy. This company, named after the four Enron executives that founded it – Jon C. Doyle, Robert C. Kelly, H. David Ramm and White – formed a subsidiary, Medicine Bow Fuel & Power, to develop a $2.8 billion coal gasification project in Medicine Bow, Wyo. The DKRW facility meets all the criteria required in the legislation: The coal will be supplied from Arch Coal mines neighboring the power facility; it will stuff carbon dioxide emissions into oil wells; and the facility will be located in a western state (Wyoming) at an altitude above 4,000 feet.

"The federal loan guarantee makes taxpayers responsible for repaying the loan if the company defaults, or if the project ends up not being economically feasible after its construction. The provision states that if an energy company receiving such a loan guarantee defaults on that loan, the bank to which the loan is owed “shall have the right to demand payment of the unpaid amount from the Secretary” of Energy. Therefore, taxpayers hold all the risk while energy companies reap all the rewards."

I am asking that you look into this and, if it is as bad as it sounds, that you attempt to have it removed from the bill or attempt to defeat the entire bill. Washington State has gotten burned enough by the Enron types. If these "capitalists" need a taxpayer handout for their venture, they shouldn't be in the business. I am appalled that Congress could even consider this corporate welfare.

[whistle]

3. Rest In Peace.....

....they are getting the money and building a new corporation. I think it's outrageous.

[fooj]

4. OMG!

:cry: