Friday, April 27,2001

THE STORY THAT WON'T GO AWAY: First, the good news: Unscrewing a few lightbulbs in the Courthouse, turning off space heaters, shutting down computers at night, the County shaved an incredible 25% off its electric bill last quarter. Beaming County Executive Pete Kremen also cut his administration's natural gas consumption by roughly the same amount, saving taxpayers a couple of thousand dollars. Modest measures, remarkable results.

"If everyone did the same, we could beat the current power crisis," Pete averred.

Alas, Mr. Kremen, if only 'twere so.

Pete brought freshman U.S. Senator Maria Cantwell to town this week to bone up on the energy problems that promise to throw thousands of people out of the best-paying jobs in Whatcom County. She lunched with a remarkably inarticulate and downcast group of business leaders and municipal executives at the Port of Bellingham's HQ.

Characterizing the situation as a "Perfect Storm" of unfortunate circumstances, Cantwell sketched a portrait of the many wonderful things Congress will do over the next two years to solve the energy problem. How marvelous; however, none of those jobs we spoke of are likely to survive through the next six months.

Mayor Mark Asmundson glanced around the Port's public meeting area at the many photos of current industrial activities. The mayor then chilled the gathering with the portend that "Suddenly these pictures will not represent current activity, but museum pieces."

Based on the Senate's solutions, Whatcom Museum ought to start clearing space on its walls.

One year without rain and 2000 of the best jobs here are destroyed?! Companies that have been around for decades are driven from our shores?!

As the mayor of Blaine demanded, "How in the hell can something like this possibly have happened?"

Solutions proferred by the group included begging BC Hydro for stray electrons: The Northwest corner of the world's only superpower reduced to hustling energy from what is essentially a third world economy. Even if the province were willing, the U.S. Department of Energy standing surly in the slop trough of the Bush Administration would surely prevent it.

An hour later, on the other side of town, the Bellingham City Council dithered over whether to extend its moratorium on the construction of power plants to all of the Mt. Baker Neighborhood, now that the urgency to save Georgia-Pacific jobs was rendered moot as a result of the pulp and chemical division closure this month.

The City's definition of the industrial zoning in that neighborhood is incompatible with the County's original industrial zoning; the County allows power plants in any of its designated industrial zones, the City is more coy. The council's exemption to the original moratorium was intended to allow a rammed-through power plant project, in a late effort to save G-P jobs that were doomed long ago.

Ready to ram is Tollhouse Energy, a venerable company incorporated back in January by local entrepreneurs that include John Asmundson. The Bellingham Herald is always quick to point out John is no relation to Mayor Mark; the Daily is slower to reveal that John Asmundson was once G-P's power guru, the guy who in part led the mill on to the volatile spot energy market, which led to the urgent quick fix of aptly-named Tollhouse, fancy that!

The urgency now gone, the council chose to strengthen its legislation, much to the chagrin of Tollhouse. Rather, The Skinny thinks the Bellingham City Council should have made a bold move in support of "business" and blanket-approved every multi-megawatt power plant imaginable for construction within the city limits. Yes, let's put hundreds of these things in front of the council. Hell, why not? None will ever be built.

Currently, there are more than 400 power generating facilities on drafting tables all over the Northwest, totaling more than 10,000 megawatts. Of these, at least 20 natural gas plants are already permitted, approved and licensed for construction. Have been for years. Little actual construction, though.

"Why" is primarily a two-part answer. First, the power industry is already well-satisfied by conditions of scarcity, which are driving their profits through the roof. Second, the great limiter of these plants are the supplies of natural gas to them. In some cases, this is a pipeline issue: No pipelines where pipelines are needed in order to feed these facilities. In some cases, it is a contract issue: No contract with the natural gas supplier to feed these plants. In some cases, it is simply an economic gambit: A plant is more valuable unbuilt but holding a valuable permit that prevents competitors from building.

There's another reason, too: By the time a third of these plants are constructed, natural gas supplies in North America will have dried up to the point where they've caused a new energy crisis, driving up power costs. It is the law of supply and demand, reader, made rabid by deregulation strategies that intensify market forces.

Ignored in this audit is reclaimed, sustainable power generated through conservation and renewables 40% of the power available to the Northwest, some studies indicate. So what's the response from the White House? "Screw the 40%. Let's go atomic! Let's smash into the Arctic reserve!"

That is why no matter how creative or innovative local governments may be in their approach to the current problem in Whatcom County, such efforts are doomed from the staggering miasma of pathological bad will leaking out of the White House. Like PATCO with Reagan, this is what happens when Labor votes Republican.

Ultimately, who is harmed by the entire bulk of U.S. industry driven bankrupt here and shipped off to the Third World where labor is cheap and the tropical sunsets blaze triumphant with sulphur and mercury? Who's harmed? No one currently empowered by the Bush Administration's coup d'etat, that's for damned sure. If you cannot bring multinationalism to the mountain, move the mountain to another nation.

Interestingly, Cantwell drew parallels in her remarks to the energy crisis of the early '70s. What she failed to conclude from history is that that crisis like this one was fabricated almost from whole cloth by an energy cartel flexing its muscles in a newly deregulated economy. (And judging by the number of 10-yards-to-the-gallon SUVs charging around America's roads, no one else learned a damned thing from history, either).

Sadly Intalco, like G-P, is probably doomed. The factors are largely the same power costs, but even more significant: The ease by which transnationals can move their capacity and assets around worldwide: The "free trade" benefit we were all schooled on. The especial tragedy here is, unlike G-P in so many ways, Intalco is the right kind of industry seated in the right place in the county.

As Cantwell told her audience, the problem with government is that it likely cannot move fast enough to avert the job loss.

We offer a quick local solution that makes public officials cringe: Grab, through the powers of imminent domain, the infrastructure that saves these jobs. We cannot think of a more appropriate place to display this unique power of government than in a move that will benefit many thousands of local residents and allow this region to chart its own destiny.

Whatcom County has more than enough power for its industries; the environmental impacts for old power are already present. The permits and supply contracts are established and the facilities here are already on line. And the cost of the required compensation to the owners of these properties cannot possibly be as expensive as building new.

What is lacking is the kind of incisive, devil-may-care leadership just nutty enough to try such a trick. But desperate times require desperate measures and, Pete, we thank ya, but that means more derring-do than turning the coffeepot down a notch.

We have a different solution in mind for Senator Maria. In simpler times, the Senate made life a living hell for what were perceived to be "unAmerican" activities. Since the current crop of suited thugs are making this corner of the U.S. resemble Moscow faster than beatnik Hollywood homosexuals from the '50s ever could, we suggest these "capitalists" get rounded up in chains and grilled before the Senate judiciary. We'd love to see 'em burst into tears on C-SPAN but, unfortunately, aiding and abetting laws being what they are, the U.S. Senate would have to grill itself right along with 'em.

©2001 ACME Communications, Inc.

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