Lessons of ENRON IGNORED spawn Billion Dollar Green Bankruptcies
It was nice to read a piece in the Boston Globe yesterday regarding FloWind because this publication rarely shines their light on green energy failures. FloWind has filed for bankruptcy protection following a slew of green company failures as the result of the policies of the former MA Governor Deval Patrick Administration; I believe that MA is the U.S. leader in green company failures. Off the top of my head these include A123 Systems, Evergreen Solar, Beacon Power, Boston Power, Konarka Technologies, and American Superconductor? (I think).
Boston Globe's Scott Kirsner @ email@example.com deserves a shout out because he's among the few reporters willing to look at the economic disasters created by compromised or incompetent Public Officials pitching green bubbles. If you're so inclined, contact Scott Kirsner as I did yesterday.
My next send to Boston Globe reporter Mr. Kirsner is this....
shell companies, phony trade deals, and complex financial transactions used to inflate earnings, hide debt, and increase stock prices..” “corporate executives have walked away from corporate disasters with millions in their pockets, often from exercising stock options, while pension funds, investors, employees and creditors have lost everything.”
Former MA Energy and Environment Ian Bowles restructured MA energy market seven times with his Advisor on green policy, under the Global Warming Solutions Act, appointed by Governor Deval Patrick, Paul Gaynor CEO of Boston-based First Wind. Bowles left office in 2011 to become a Director of First Wind. Patrick Wood III (Harvard alumnus), served as Chairman of the Federal Energy Regulatory Commission FERC based on Enron CEO Ken Lay’s recommendation to then President G.W. Bush. Wood also served as Director of First Wind.
Pat Wood was charged as FERC Chairman, by then President Bush, to address energy market manipulation by Enron…as Ken Lay’s man he ingloriously failed to rein in ENRON. See Consumer Watchdog’s letter to FERC Chairman Pat Wood:
REMEMBERING ENRON YEAR 2002
Senator Carl Levin, below, was addressing the future Director of First Wind, Patrick Wood III, then FERC Chairman charged by President George W. Bush to address corporate fraud by ENRON. From the Senate Government Affairs November 12, 2002 ASLEEP AT THE SWITCH: FERC'S OVERSIGHT OF ENRON CORPORATION--VOL. I
The 107th Congress transcript, in part, states-
Senator Levin: “The Enron scandal began by exposing dishonest accounting at a number of major U.S. companies that, unbeknownst to most, had begun to eat away at the reliability of their financial statements. It has since exposed the conflicts of interest that have made investors distrust investment reports issued by leading U.S. financial firms. It has exposed how those firms have become unwilling participants in shell companies, phony trade deals, and complex financial transactions used to inflate earnings, hide debt, and increase stock prices..”
Levin: “corporate executives have walked away from corporate disasters with millions in their pockets, often from exercising stock options, while pension funds, investors, employees and creditors have lost everything.”
More than a decade following ENRON’s corporate fraud and energy market manipulation, and the CA energy crisis ENRON triggered, former ENRON execs have re-emerge emboldened by UPC First Wind Director Pat Wood III’s ineptitude or intention as FERC Chairman. I think it’s very important to note that the Renewable Portfolio Standard, RPS, was first adopted in U.S. in Texas in 1999. TX Public Utility Commissioner Pat Wood was Chairman of the TX PUC at the time as then TX Governor G.W. Bush had appointed Wood based (again) on ENRON Ken Lay’s recommendation.
The Mass Energy Market was restructured by the very powerful Secretary Ian Bowles, with the help of his governor appointed green policy Advisor, First Wind CEO Paul Gaynor, who surrounded himself with former ENRON execs.
CREATING SPECIAL GOVERNMENT FAVOR...NOT FOR PUBLIC BENEFIT...FOR FORMER ENRON EXECS
Mr. Bowles served as Secretary of Energy and Environmental Affairs for the Commonwealth of Massachusetts from 2007 to 2011, where he oversaw a landmark restructuring of six agencies with more than 3,000 staff to focus on clean energy commercialization, greenhouse gas reduction and environmental quality. He also oversaw the enactment and implementation of seven new state laws; pioneered the model of combining energy and environmental agencies that is now being followed by other states and jurisdictions; and set new nation-leading standards.
ENRON KEY EXECUTIVES IN THE WIND BIZ TODAY-
APEX EVP of business development Steve Vavrik is also listed as Apex Clean Energy, Inc., Chief Commercial Officer. Vavrik was VP of First Wind, and Vice President of Risk Management for UPC in 2006 that changed its name to First Wind in 2008. Vavrik was with ENRON in London in a project development and gas trading capacity. His role at ENRON included trading natural gas forward contracts and negotiating structured power deals.
Vavrik is/was Chair Managing Director of SunPower Corp, (filed for bankruptcy protection with $1.5 billion in debt).
UPC First Wind President Michael Alvarez is responsible for First Wind operations and assets. After beginning his energy career with GE Capital, he joined ENRON in London.
First Wind formed DeepWater Wind (Note that First Wind was bought by SunEdison SUNE lost 71.4 % in market value during three months following this transaction and later filed for bankruptcy protection).
DEEPWATER WIND BOARD OF MANAGERS Brian Redmond Managing Director of ENRON
DeepWater Wind Board Member Brian Redmond is Founder of Paragon Energy Holdings, LLC; former President of Houston Pipe Line Company and President of Louisiana Resource Company, Managing Director of ENRON, and Executive Director of UBS Warburg Energy
MICHAEL ALVAREZ executive for First Wind, SunEdison and ENRON
is President of Kenetech Energy Systems (that formed EcoElectrica) .
Kenetech Energy Systems and ENRON Development Corporation formed EcoElectrica
James V. Derrick, Jr., is listed as Primary Officer EcoElectrica L.P. This is the same James V. Derrick, Jr., who served as executive VP of ENRON
James V. Derrick EVP AND ENRON EVENTS PAST
Dec. 2, 2001 – Enron files for Chapter 11 bankruptcy protection, at the time the largest bankruptcy in U.S. history. https://insidersense.com/newsletter/Enron-The-Complete-Chronology/h....
Derrick is also among the 29 current and former Enron executives and directors who were sued in federal court for more than $1 billion allegedly gained by sales of company stock. Derrick sold $12.6 million in shares during a time period when chairman and chief executive Ken Lay sold $101 million in Enron stock.
EcoElectrica is a Bermuda limited partnership formed by affliates of KENETECH Energy Systems, Inc. (KES) and Enron Development Corporation (Enron). EcoElectrica’s general partners are KES Bermuda, Inc., and Buenergia, B.V., each which holds one percent interest. Ecoelectric’s limited partners are KES Puerto Rico, L.P. and Buenergia Enron de Puerto Rico, C.V., which are both indirect wholly-owned subsidiaries of KENETECH Corp., which also owns KES. Buenergia B.V. and Buenergia Enron de Puerto Rico, C.V. are both indirect wholly-owned subsidiaries of Enron Corporation, the Parent Company of Enron Development Corporation.
Mike Cutbirth CGEI Wind is jointly owned by Good Energies and Champlin Windpower, LLC led by Mike Cutbirth. Mike was formerly head of Global Finance for Zond Corporation and ENRON Wind and served 4 years as the first CEO of Clipper Windpower formed by ENRON, (James Dehlsen).
The first customer of the $40 million dollar, publicly-funded, Charlestown, MA Wind Turbine Testing Center WTTC was Clipper Wind founded by ENRON. Clipper Wind has since been forced into bankruptcy protection. While, MA Wind Turbine Testing Center Executive Director Rahul Yarala is a staffer at MA Clean Energy Center (MassCEC), and the former Director of Engineering at Clipper Windpower, Inc., formed by ENRON. (One wonders why Yarala’s knowledge of Clipper Wind’s mechanical failures as Director of Engineering of Clipper resulted in this company’s status as first customer of the WTTC). Perhaps Yarala was incentivized to remain silent… among the "Top 5 Officers and Compensation" at the testing center who received approximately $798,937.00 in ARRA Stimulus funding, with Rahul Yarala of MASSCEC collecting $150,000.00.
ENRON Energy Services Chris Wissemann is Fishermen’s Energy Chief Executive Officer and General Manager of Freshwater Wind. Wissermann is Chief Operating Officer of Winergy Power, LLC and the Founder of DeepWater Wind, and past President of Garden State Offshore Energy. Wissermann spearheaded legislation to create long term power purchase agreements for DeepWater Wind which he founded.
EPIC ECONOMIC DAMAGE
‘Shareholder Voice: SunEdison (SUNE) is the new Enron!’
Equities Staff | Sunday, 29 January 2017 08:12 (EST)
A group of shareholders for SunEdison requested attention to their investment
I am writing to you to bring attention to the current SunEdison Chapter 11 Bankruptcy, SunEdison Prime Clerk case docket (16-10992) filed April 21, 2016 Honorable Judge Stuart Bernstein.
We are group of over 1000 shareholders both U.S and International. We are seeking justice. We are actively searching for media’s help to get our voices heard. SunEdison is the new Enron!
‘SunEdison Shareholder Uncovers Billions Of Dollars In Taxpayer Money Hidden In Bankruptcy’
Congressional investigators are examining the use of tax incentives for solar-power companies.
SunEdison has received "the vast majority" of a $1 billion credit line the Export-Import Bank of the U.S. extended to India.
SunEdison has been successful in bypassing Sarbanes-Oxley regulation that should be a tool to avoid a new Enron scandal.
If history is an indicator of the future, green companies for which Patrick Wood III has served as Director, like the bankrupt SunPower ($1.5 bn.), bankrupt Range Fuels ($80 mil., also reported $300 mil.), and bankrupt Xtreme Power (with at least ($600,000 in stimulus grants), the failure of green energy companies with which Wood is associated will continue.
It’s Neither about Public Interest Nor Environmental Interest, It’s ABOUT GRAFT AND GREED!
FIRST WIND ($700 million scored!) Thursday, January 1, 2015
THIS MAN KNOWS WHAT HE SPEAKS!
“ENRON LIVES!”, states Robert L. Bradley, Jr., who was ENRON CEO Ken Lay’s public policy man and speech writer during 7 of the 16 years Bradley spent at ENRON.
R.L. Bradley, Jr., writes:
As director of public policy analysis in my last seven years at Enron, I participated in many legislative and regulatory debates involving electricity, although the public policy thrust of the company was the opposite of what I personally believed was good social policy.
While I favored free markets, the business model of Ken Lay (a PhD economist with years of Washington regulatory experience) centered on special government favor. Enron, for example, had seven profit centers geared to government pricing/rationing of carbon dioxide (CO 2) emissions. And in the 1990s, the company was squarely behind a Btu tax. Today, Enron would be pushing cap and trade and a federal renewables mandate–and a lot of mandated energy efficiency with its profit centers in mind.
—Robert L. Bradley is CEO of the Institute for Energy Research and a blogger at Master-Resource.org. His new book, Capitalism at Work: Business, Government, and Energy, is inspired by the rise and fall of Enron. [cut] continue reading: