Former Enron officer negotiating plea bargain

By Associated Press


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HOUSTON — U.S. authorities were preparing a criminal complaint against Enron Corp.'s former chief accountant recently, while former finance chief Andrew Fastow was negotiating a plea deal that would send him to prison, sources close to the case told Associated Press.

Richard Causey, the former chief accounting officer at the fallen energy giant, was expected to surrender to federal authorities today, sources with knowledge of the matter said, speaking on condition of anonymity. The exact nature of the complaint was not clear.

Causey and another executive were assigned to review all Enron transactions with a partnership called LJM, devised by Fastow.

If prosecutors, defence lawyers and the judges presiding over the cases agree on the proposed plea deal, Fastow could appear in court to change his innocent plea to guilty, sources close to the case said on condition of anonymity.

Fastow would be the highest ranking executive to plead guilty in the criminal investigation of Enron's 2001 collapse.

The Houston Chronicle, citing sources it did not identify, reported yesterday that federal prosecutors are offering Fastow a 10-year sentence.

A plea deal that called for a five-month sentence for his wife, Lea, was rejected by U.S. District Judge David Hittner yesterday afternoon. Hittner said the deal was too binding and he wanted more leeway on her sentence.

Lawyers for the Fastows did not return calls seeking comment. Gordon Andrew, the family's spokesperson, declined comment.

Fastow, 42, is charged with 98 counts of fraud, money laundering, insider trading and other charges for allegedly masterminding a web of schemes that hid Enron's debt, inflated profits and allowed him to skim millions of dollars for himself, his family and selected friends and colleagues.

He is free on a $5 million (U.S.) bond pending trial scheduled for April 2004.

Negotiated pleas often involve agreements to testify against others, and federal prosecutors are under pressure to develop cases against Enron's former top executives, Kenneth Lay and Jeffrey Skilling. However, there was no immediate indication whether any such arrangement was part of a deal with Fastow.

When Fastow was indicted in October, 2002, his lawyers said Skilling and Lay approved his work.

Neither Skilling, who abruptly quit as chief executive nearly four months before Enron filed for bankruptcy protection in the fall of 2001, nor Lay, the company's founder who resigned in January, 2002, have been charged with any crimes. Both maintain their innocence in the implosion that resulted in thousands of layoffs and dozens of lawsuits.

Lea Fastow, 42, was formerly assistant treasurer at Houston-based Enron. She is set to go to trial Feb. 10 on six counts of conspiracy and filing false tax forms.

Prospective jurors were scheduled to report to the courthouse today to answer a questionnaire to see if they are fit to serve as jurors in her case.

Causey, 43, was fired Feb. 14, 2002, after a board of directors report noted his failure to properly monitor the LJM partnership, which became a focal point for investigators looking into alleged misdeeds by Fastow.

Causey's lawyer, Reid Weingarten, did not return a call.

The Fastows are among 26 people charged so far in the justice department's investigation.

In September, former Enron treasurer Ben Glisan became the first Enron executive to go to prison, receiving a five-year sentence after pleading guilty to conspiracy.

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B.C. Challenges Alberta's Electricity Export Restrictions

BC-Alberta Electricity Restrictions spotlight interprovincial energy tensions, limiting power exports and affecting grid reliability, energy sharing, and climate goals, while raising questions about federal-provincial coordination, smart grids, and storage investments.

 

Key Points

Policies limiting Alberta's power exports to provinces like BC, prioritizing local demand and affecting grid reliability.

✅ Prioritizes Alberta load over interprovincial power exports

✅ Risks to BC peak demand support and outage resilience

✅ Pressures for federal-provincial coordination and smart-grid investment

 

In a move that underscores the complexities of Canada's interprovincial energy relationships, the government of British Columbia (B.C.) has formally expressed concerns over recent electricity restrictions imposed by Alberta after it suspended electricity purchase talks with B.C., amid ongoing regional coordination challenges.

Background: Alberta's Electricity Restrictions

Alberta, traditionally reliant on coal and natural gas for electricity generation, has been undergoing a transition towards more sustainable energy sources as it pursues a path to clean electricity in the province.

In response, Alberta introduced restrictions on electricity exports, aiming to prioritize local consumption and stabilize its energy market and has proposed electricity market changes to address structural issues.

B.C.'s Position: Ensuring Energy Reliability and Cooperation

British Columbia, with its diverse energy portfolio and commitment to sustainability, has historically relied on the ability to import electricity from Alberta, especially during periods of high demand or unforeseen shortfalls. The recent restrictions threaten this reliability, prompting B.C.'s government to take action amid an electricity market reshuffle now underway.

B.C. officials have articulated that access to Alberta's electricity is crucial, particularly during outages or times when local generation does not meet demand. The ability to share electricity among provinces ensures a stable and resilient energy system, benefiting consumers and supporting economic activities, including critical minerals operations, that depend on consistent power supply.

Moreover, B.C. has expressed concerns that Alberta's restrictions could set a precedent that might affect future interprovincial energy agreements. Such a precedent could complicate collaborative efforts aimed at achieving national energy goals, including sustainability targets and infrastructure development.

Broader Implications: National Energy Strategy and Climate Goals

The dispute between B.C. and Alberta over electricity exports highlights the absence of a cohesive national energy strategy, as external pressures, including electricity exports at risk, add complexity. While provinces have jurisdiction over their energy resources, the interconnected nature of Canada's power grids necessitates coordinated policies that balance local priorities with national interests.

This situation also underscores the challenges Canada faces in meeting its climate objectives. Transitioning to renewable energy sources requires not only technological innovation but also collaborative policies that ensure energy reliability and affordability across provincial boundaries, as rising electricity prices in Alberta demonstrate.

Potential Path Forward: Dialogue and Negotiation

Addressing the concerns arising from Alberta's electricity restrictions requires a nuanced approach that considers the interests of all stakeholders. Open dialogue between provincial governments is essential to identify solutions that uphold the principles of energy reliability, economic cooperation, and environmental sustainability.

One potential avenue is the establishment of a federal-provincial task force dedicated to energy coordination. Such a body could facilitate discussions on resource sharing, infrastructure investments, and policy harmonization, aiming to prevent conflicts and promote mutual benefits.

Additionally, exploring technological solutions, such as smart grids and energy storage systems, could enhance the flexibility and resilience of interprovincial energy exchanges. Investments in these technologies may reduce the dependency on traditional export mechanisms, offering more dynamic and responsive energy management strategies.

The tensions between British Columbia and Alberta over electricity restrictions serve as a microcosm of the broader challenges facing Canada's energy sector. Balancing provincial autonomy with national interests, ensuring equitable access to energy resources, and achieving climate goals require collaborative efforts and innovative solutions. As the situation develops, stakeholders across the political, economic, and environmental spectrums will need to engage constructively, fostering a Canadian energy landscape that is resilient, sustainable, and inclusive.

 

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EV Sales Still Behind Gas Cars

U.S. EV and Hybrid Sales 2024 show slower adoption versus gas-powered cars, as charging infrastructure gaps, range anxiety, higher upfront costs, and affordability concerns persist despite incentives, battery tech advances, and expanding fast-charging networks.

 

Key Points

They represent 10-15% of U.S. car sales, lagging gas models due to costs, charging gaps, range anxiety, and access.

✅ 10-15% of U.S. auto sales; gas cars dominate

✅ Barriers: upfront cost, limited charging, range anxiety

✅ Incentives, battery tech, and networks may boost adoption

 

Sales of hybrid and electric vehicles (EVs) in the U.S. are continuing to trail behind traditional gas-powered vehicles in 2024, despite significant advancements in automotive technology and growing public awareness of environmental concerns. While the electric vehicle market has seen steady growth and recent sales momentum over the past few years, the gap between EVs and gasoline-powered cars remains wide.

In 2024, hybrid and electric vehicles are projected to account for roughly 10-15% of total car sales in the U.S., a figure that, though significant, still lags far behind the sales of gas-powered vehicles and follows a Q1 2024 EV market share dip in the U.S., according to recent data. Analysts point to several factors contributing to this slower adoption rate, including higher upfront costs, limited charging infrastructure, and consumer concerns over range anxiety. Additionally, while EVs and hybrids offer lower lifetime operating costs, the initial price difference remains a hurdle for many prospective buyers.

One of the key challenges for EV sales continues to be the perception of cost, even as analyses show they can be better for the planet and often your budget over time. While federal and state incentives have made EVs more affordable, especially for lower-income buyers, the price tag for many electric models remains steep, particularly for higher-end vehicles. Even with government rebates, EVs can still be priced higher than their gasoline counterparts, making them less accessible for middle-class consumers. Many potential buyers are also hesitant to make the switch, unsure if the long-term savings will outweigh the initial investment.

Another critical factor is the limited charging infrastructure in many parts of the country. Though major cities have seen significant improvements in charging stations, rural areas and smaller towns still lack the necessary infrastructure to support widespread EV use. This uneven distribution of charging stations leads to concerns about being stranded in areas without access to fast-charging options. While automakers are working on expanding charging networks, the pace of this development is slow, and EVs won't go mainstream until key problems are fixed according to industry leaders.

Range anxiety is also a continuing issue, despite improvements in battery technology. Though newer electric vehicles can go further on a single charge than ever before, the range of many EVs still doesn't meet the expectations of some drivers, particularly those who regularly take long road trips or live in rural areas. The longer charging times and the necessity of planning routes around charging stations add to the hesitation, especially when gasoline-powered vehicles provide greater convenience and flexibility.

The shift toward EVs is further hindered by the continued dominance of gas-powered cars in the market. Gasoline vehicles benefit from decades of development, an extensive fueling infrastructure, and familiarity with the technology. For many consumers, the convenience, affordability, and ease of use of gas-powered vehicles still outweigh the benefits of switching to an electric alternative. Additionally, with fluctuating fuel prices, many drivers continue to find gas-powered cars relatively cost-effective in terms of daily commuting, especially when compared to the current costs of EV ownership.

Despite these challenges, there is hope for a future shift. The federal government’s push for stricter emissions regulations and tax incentives continues to fuel growth in the electric vehicle market. As automakers ramp up production and more affordable options become available, EV sales are expected to increase in the coming years. Companies like Tesla, Ford, whose hybrids are getting a boost, and General Motors are leading the charge, while new manufacturers like Rivian and Lucid Motors are offering alternatives to traditional gasoline vehicles.

Furthermore, the development of new technologies, such as solid-state batteries and faster charging systems, could help alleviate some of the current drawbacks of electric vehicles. If these advancements reach mass-market production in the next few years, they could help make EVs a more attractive and practical option for consumers, aligning with within-a-decade adoption forecasts from some industry observers.

In conclusion, while hybrid and electric vehicles are growing in popularity, gas-powered vehicles continue to dominate the U.S. car market in 2024. Challenges such as high upfront costs, limited charging infrastructure, and concerns about range persist, making it difficult for many consumers to make the switch to electric even as they ask if it's time to buy an EV in 2024. However, with continued investment in technology and infrastructure, the gap between EVs and gas-powered vehicles could narrow in the years to come.

 

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This kite could harness more of the world's wind energy

Autonomous Energy Kites harness offshore wind on floating platforms, using carbon fiber wings, tethers, and rotors to generate grid electricity; an airborne wind energy solution backed by Alphabet's Makani to cut turbine costs.

 

Key Points

Autonomous Energy Kites are tethered craft that capture winds with rotors, generating grid power from floating platforms.

✅ Flies circles on tethers; rotors drive generators to feed the grid.

✅ Operates over deep-sea winds where fixed turbines are impractical.

✅ Lighter, less visual impact, and lower installation costs offshore.

 

One company's self-flying energy kite may be the answer to increasing wind power around the world, alongside emerging wave power solutions as well.

California-based Makani -- which is owned by Google's parent company, Alphabet -- is using power from the strongest winds found out in the middle of the ocean, where the offshore wind sector has huge potential, typically in spots where it's a challenge to install traditional wind turbines. Makani hopes to create electricity to power communities across the world.

Despite a growing number of wind farms in the United States and the potential of this energy source, lessons from the U.K. underscore how to scale, yet only 6% of the world's electricity comes from wind due to the the difficulty of setting up and maintaining turbines, according to the World Wind Energy Association.

When the company's co-founders, who were fond of kiteboarding, realized deep-sea winds were largely untapped, they sought to make that energy more accessible. So they built an autonomous kite, which looks like an airplane tethered to a base, to install on a floating platform in water, as part of broader efforts to harness oceans and rivers for power across regions. Tests are currently underway off the coast of Norway.

"There are many areas around the world that really don't have a good resource for renewable power but do have offshore wind resources," Makani CEO Fort Felker told Rachel Crane, CNN's innovation correspondent. "Our lightweight kites create the possibility that we could tap that resource very economically and bring renewable power to hundreds of millions of people."

This technology is more cost-efficient than a traditional wind turbine, which is a lot more labor intensive and would require lots of machinery and installation.

The lightweight kite, which is made of carbon fiber, has an 85-foot wingspan. The kite launches from a base station and is constrained by a 1,400-foot tether as it flies autonomously in circles with guidance from computers. Crosswinds spin the kite's eight rotors to move a generator that produces electricity that's sent back to the grid through the tether.

The kites are still in the prototype phase and aren't flown constantly right now as researchers continue to develop the technology. But Makani hopes the kites will one day fly 24/7 all year round. When the wind is down, the kite will return to the platform and automatically pick back up when it resumes.

Chief engineer Dr. Paula Echeverri said the computer system is key for understanding the state of the kite in real time, from collecting data about how fast it's moving to charting its trajectory.

Echeverri said tests have been helpful in establishing what some of the challenges of the system are, and the team has made adjustments to get it ready for commercial use. Earlier this year, the team successfully completed a first round of autonomous flights.

Working in deeper water provides an additional benefit over traditional wind turbines, according to Felker. By being farther offshore, the technology is less visible from land, and the growth of offshore wind in the U.K. shows how coastal communities can adapt. Wind turbines can be obtrusive and impact natural life in the surrounding area. These kites may be more attractive to areas that wish to preserve their scenic coastlines and views.

It's also desirable for regions that face constraints related to installing conventional turbines -- such as island nations, where World Bank support is helping developing countries accelerate wind adoption, which have extremely high prices for electricity because they have to import expensive fossil fuels that they then burn to generate electricity.

Makani isn't alone in trying to bring novelty to wind energy. Several others companies such as Altaeros Energies and Vortex Bladeless are experimenting with kites of their own or other types of wind-capture methods, such as underwater kites that generate electricity, a huge oscillating pole that generates energy and a blimp tethered to the ground that gathers winds at higher altitudes.

 

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Wind Denmark - summer's autumn weather provides extraordinarily low electricity prices

Western Denmark Negative Electricity Prices stem from wind energy oversupply, grid congestion, and limited interconnector capacity via Nord Pool and TenneT, underscoring electrification needs, renewable integration, special regulation, and system flexibility.

 

Key Points

They are sub-zero power prices from wind oversupply, weak interconnectors, low demand, and balancing needs.

✅ Caused by high wind output, low demand, and export bottlenecks

✅ Limited Nord Pool interconnector capacity depresses prices

✅ Special regulation and district heating absorb excess power

 

A downturn in the cable connection to Norway and Sweden, together with low electricity consumption and high electricity production, has pushed down European electricity prices to a negative level in Western Denmark.

A sign that the electrification of society is urgently needed, says Soren Klinge, head of electricity market at Wind Denmark today.

The heavy winds during the first weekend of July, unlike periods when cheap wind power wanes in the UK, have not only had consequences for the Danes who had otherwise been looking forward to spending their first days at home in the garden or at the beach. It has also pushed down prices in the electricity market to a negative level, which especially the West Danish wind turbine owners have had to notice.

'The electricity market is currently affected by an unfortunate coincidence of various factors that have a negative impact on the electricity price: a reduced export capacity to the other Nordic countries, a low electricity consumption and a high electricity generation, reflecting broader concerns over dispatchable power shortages in Europe today. Unfortunately, the coincidence of these three factors means that the price base falls completely out of the market. This is another sign that the electrification of society is urgently needed, 'explains Soren Klinge, electricity market manager at Wind Denmark.

According to the European power exchange Nord Pool Spot, where UK peak power prices are also tracked, the cable connection to Sweden is expected to return to full capacity from 19 July. The connection between Jutland and Norway is only expected to return to full capacity in early September.

2000 MWh / hour in special regulation

During the windy weather on Monday morning, July 6, up to 2000 MWh / hour was activated at national level in the form of so-called special regulation. Special regulation is the designation that the German system operator TenneT switches off Danish electricity generation at cogeneration plants and wind turbines in order to help with the balancing of the German power system during such events. In addition, electric boilers at the cogeneration plants also contribute by using the electricity from the electricity grid and converting it to district heating for the benefit of Danish homes and businesses.

'The Danish wind turbines are probably the source of most of the special regulation, because there are very few cogeneration units to down-regulate electricity generation. Of course, it is positive to see that we have a high degree of flexibility in the wind-based power system at home. That being said, Denmark does not really get ahead with the green transition, even as its largest energy company plans to stop using coal by 2023, until we are able to raise electricity consumption based on renewable energy.

 

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Proposed underground power line could bring Iowa wind turbine electricity to Chicago

SOO Green Underground Transmission Line proposes an HVDC corridor buried along Canadian Pacific railroad rights-of-way to deliver Iowa wind energy to Chicago, enhance grid interconnection, and reduce landowner disruption from new overhead lines.

 

Key Points

A proposed HVDC project burying lines along a railroad to move Iowa wind power to Chicago and link two grids.

✅ HVDC link from Mason City, IA, to Plano, IL

✅ Buried in Canadian Pacific railroad right-of-way

✅ Connects MISO and PJM grids for renewable exchange

 

The company behind a proposed underground transmission line that would carry electricity generated mostly by wind turbines in Iowa to the Chicago area said Monday that the $2.5 billion project could be operational in 2024 if regulators approve it, reflecting federal transmission funding trends seen recently.

Direct Connect Development Co. said it has lined up three major investors to back the project. It plans to bury the transmission line in land that runs along existing Canadian Pacific railroad tracks, hopefully reducing the disruption to landowners. It's not unusual for pipelines or fiber optic lines to be buried along railroad tracks in the land the railroad controls.

CEO Trey Ward said he "believes that the SOO Green project will set the standard regarding how transmission lines are developed and constructed in the U.S."

A similar proposal from a different company for an overhead transmission line was withdrawn in 2016 after landowners raised concerns, even as projects like the Great Northern Transmission Line advanced in the region. That $2 billion Rock Island Clean Line was supposed to run from northwest Iowa into Illinois.

The new proposed line, which was first announced in 2017, would run from Mason City, Iowa, to Plano, Ill., a trend echoed by Canadian hydropower to New York projects. The investors announced Monday were Copenhagen Infrastructure Partners, Jingoli Power and Siemens Financial Services.

The underground line would also connect two different regional power operating grids, as seen with U.S.-Canada cross-border transmission approvals in recent years, which would allow the transfer of renewable energy back and forth between customers and producers in the two regions.

More than 36 percent of Iowa's electricity comes from wind turbines across the state.

Jingoli Power CEO Karl Miller said the line would improve the reliability of regional power operators and benefit utilities and corporate customers in Chicago, even amid debates such as Hydro-Quebec line opposition in the Northeast.

 

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Ontario Reducing Burden on Industrial Electricity Ratepayers

Ontario Industrial Electricity Pricing Reforms aim to cut regulatory burden for industrial ratepayers through an energy concierge service, IESO billing reviews, GA estimation enhancements, clearer peak demand data, and contract cost savings.

 

Key Points

Measures to reduce industrial power costs via an energy concierge, IESO and GA reviews, and better peak demand data.

✅ Energy concierge eases pricing and connection inquiries

✅ IESO to simplify bills and refine GA estimation

✅ Real-time peak data and contract savings under review

 

Ontario's government is pursuing burden reduction measures for industrial electricity ratepayers, including legislation to lower rates to help businesses compete, and stimulate growth and investment.

Over the next year, Ontario will help industrial electricity ratepayers focus on their businesses instead of their electricity management practices by establishing an energy concierge service to provide businesses with better customer service and easier access to information about electricity pricing and changes for electricity consumers as well as connection processes.

Ontario is also tasking the Independent Electricity System Operator (IESO) to review and report back on its billing, settlement and customer service processes, building on initiatives such as electricity auctions that aim to reduce costs.

 

Improve and simplify industrial electricity bills, including clarifying the recovery rate that affects charges;

Review how the monthly Global Adjustment (GA) charge is estimated and identify potential enhancements related to cost allocation across classes; and,

Improve peak demand data publication processes and assess the feasibility of using real-time data to determine the factors that allocate GA costs to consumers.

Further, as part of the government's continued effort to finding efficiencies in the electricity system, Ontario is also directing IESO to review generation contracts to find opportunities for cost savings.

These measures are based on industry feedback received during extensive industrial electricity price consultations held between April and July 2019, which underscored how high electricity rates have impacted factories across the province.

"Our government is focused on finding workable electricity pricing solutions that will provide the greatest benefit to Ontario," said Greg Rickford, Minister of Energy, Northern Development and Mines. "Reducing regulatory burden on businesses can free up resources that can then be invested in areas such as training, new equipment and job creation."

The government is also in the process of developing further changes to industrial electricity pricing policy, amid planned rate increases announced by the OEB, informed by what was heard during the industrial electricity price consultations.

"It's important that we get this right the first time," said Minister Rickford. "That's why we're taking a thoughtful approach and listening carefully to what businesses in Ontario have to say."

Helping industrial ratepayers is part of the government's balanced and prudent plan to build Ontario together through ensuring our province is open for business and building a more transparent and accountable electricity system.

 

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