Tag: Monopolies

In 2012, an even MORE ridiculous 25x25 requirement was promoted (and failed) as a constitutional amendment, in a state which has a monstrous electricity appetite as a leader in manufacturing.  Now as the legislature approaches the crossroads of [Oh gosh we can't meet the 10%!] and [What the hell happened to electricity prices?] in Michigan, another 35% 'mandate' pusher shows up with a 'conservative' emphasis and the useful idiots who have already signed on.

As soon as Michigan State Representative Mike Shirkey announced a solid-as-steel return to electricity competition in our state, the rust of cronyism began eating away at the plan. Snyder stepped up the call for increased renewable energy in the midst of the current mandate meltdown, and a new shadow group was formed with friendly 'conservative' faces to front it. (see useful idiot mention above)

Sometimes however, its worth looking to other experts who have a different take on such things.

Are the mandates even legal?

Thanks to the TB912, and Dining Room productions for another useful and informative video.

As the drum beat for real electric competition picks up, its interesting to see utilities offering reductions in rates.  How convenient and thick with irony is it that as Mike Shirkey starts beating said drum, DTE proclaims accross the board rate cuts! From Crains:

"Last month, DTE announced it would lower electric rates starting this month for business and most industrial customers between 5.5 percent to 7.4 percent and drop residential rates by an average of 6.5 percent. The cuts are expected to save about $80 a year for homeowners and varying amounts for businesses based on usage.

It was DTE's first rate reduction since 2007, when the company lowered base rates by $80 million. "

Yes timing IS everything when attempting to pass legislation that limits consumer choice.  Perhaps its good to look benevolent so that people say "what a nice organization this is," and let up pressure on competition legislation.  It worked in 2007, and monopoly legislation passed. And now that the peasants with pitchforks and torches are approaching,

"Since 2008, requests (and approvals) for rate increases have been nearly four times the historic average. Meanwhile our retail electric energy costs have gone up more than 30 percent, while wholesale costs for electric energy in the Midwest region have gone down almost 50 percent.

Let them eat it.

We knew the costs that "green energy" programming in Michigan would incur on the taxpayers left in the state.  The utilities knew this as well, and wasted no efforts in having such draconian reversals of free markets passed with the likes of HB 5524 (2007):

"Passed 78 to 29 in the House on September 18, 2008, to adopt a compromise version of the bill reported by a House-Senate conference committee. This would mostly end the state's electric competition law that allows customers to choose an alternative provider; allow the utilities to impose surcharges on customers so they can recoup the "costs" incurred from Michigan's experiment with competitive electricity markets; and phase out over five years the current cross-subsidization of residential customers by commercial and industrial ones. The bill would guaranty DTE and Consumers Power at least 90 percent of the utility business in the areas they serve, even if other providers offer lower prices. The bill is tie-bared to Senate Bill 213, which imposes "renewable" energy mandates on utilities. "

SB 213 was a doozy, with each chamber ratcheting up the mandate for renewable energy produced each time it was reconciled:

"Introduced by Sen. Patricia Birkholz (R) on February 20, 2007, to mandate that electric utilities acquire at least 4 percent of their power from "renewable" sources, growing to at least 8 percent by 2013. .. to mandate that electric utilities acquire at least 7 percent of their power from "renewable" and "clean" sources (including "carbon capture" coal plants) by 2015 .. to mandate that Michigan electric utilities acquire 10 percent of their power from "renewable" sources by the end of 2015. .."

And as long as the power monopoly remained, it was no problem for the major utilities in Michigan.  They get 90% of the market GUARANTEED by legislation, and the ratepayer gets the shaft through piss poor legislation and cronyism.

One legislator is bringing some attention back to this.

Today, amidst the work stoppage by DDOT bus drivers and concerns over upset and dis-spirited riders, State Representative Tom McMillin (R-Rochester Hills) proclaimed three words: "Free the jitney!" proving there is something straight up about a guy who sees the essence of a problem and goes right to fixing it.

Perhaps some of you may have read a piece at PJ Media by Richard Fernandez?  In "Single Point Of Failure," Fernandez describes how big government can choke liberty and innovation, and even notes the seemingly paradoxical place liberal run governments must be in to support anti union measures that prohibit strikes for public transportation.

"The BART strike in the Bay area prompted John Diaz to argue in a San Francisco Chronicle op-ed that strikes in the Bay Area should be outlawed. Yes that's right. No right to strike in Berkeley.  He admits this proposal sounds fascist -- is fascist -- but the situation in San Francisco allows no alternative."

Given the singular version of transportation promoted by the left these days, it can be spectacularly gratifying to have such a well met crisis drive home the consistent folly of over managing the daily affairs human beings.  In the PJ article, it is planners run amuck, (and into a ditch) concentration of populations, (ala A21) and in a heartbeat, everyone is susceptible to the most minor interruption of government benevolence, and general transportation assistance.

Let that sink in.

Allowing private citizens to make a decision on what garbage service they might purchase.

The chilling advocacy of removing the ability of one to contract for themselves, often becomes the result of a perceived problem.  A perceived problem that has likely been amplified by complaints of noise, traffic, and "those ugly ol garbage trucks driving by more than once a week."  Grown out of proportion by elected officials concerned about the financial means of maintaining roadways as their budgets disintegrate around them. Grown, amplified, and thrust forward eagerly by the "gods of the copybook headings."

A city, and two townships have fallen to this ruse of benefit to the citizenry.   The false promise of saved roads, and less garbage truck traffic blight buying the conservative souls of those who think they are being fiscally responsible negotiating the "best deals" for their constituents.  The false promise and Faustian bargain that takes away the true rights to negotiate for one's own self, and instead, insert a board-knows-best dependency upon the public.

The benefits as they see it are lower costs for the pick up guaranteed by the winning bidder for the contract, and reduced heavy truck traffic which will reduce street damage and make for quieter neighborhoods.  

The negatives are obvious.  Its yet another monopoly being proposed

And even as there are commission members who recognize the moral perils, they suggest they will be in support of such an arrangement that limits the choice of city residents.  Surprisingly, there was not a great compliment of those who disagree with the thought of yet another government picked winning scheme.  However, the mayor's response to emails suggested there might well be a number who preferred to lobby from home.