In California, local energy officials hoping to green their regions are turning to megacorporate
polluters to supply their “green energy,” insisting that it is the only way for
small power companies to be “competitive on the open energy market.”
This corporate-dependent approach to “going green” has energy democracy
advocates concerned about the future of green energy. But it is also indicative of
a larger, and more dangerous global phenomenon -- one that “Shock Doctrine”
author Naomi Klein has dubbed “Disaster Capitalism.”
by Sandy Leon Vest
In her best-selling book,
“The Shock Doctrine,”
award-winning author
and investigative
journalist Naomi Klein,
articulated the ways
in which corporate
interests exploit crisis
to maximize profits.
Klein wrote “The Shock
Doctrine” back in 2007, but
as the “Occupy Movement” is
making clear, her observation
that power brokers and
corporations take advantage
of crisis to push through
undemocratic economic
policies may be even more
relevant today than it was then.
Today the phenomenon that
Klein has termed “disaster
capitalism” is playing out
across the country (and the
world) in an equal opportunity
fashion. While the nation’s
most impoverished states
tend to be the most vulnerable
to rapacious corporate greed
(as with New Orleans’ post-
Katrina greed-and-fraud-fest), even California
is not immune to corporate seduction in times of
financial stress, as two of its wealthier counties
recently discovered for themselves.
Because it feeds on human need, disaster capitalism
may present the most pernicious threat yet to democratic
institutions, community sustainability and local control
Disaster capitalism meets local
“Community Choice Aggregation”
in need of a “Big Dog”
In 2010, Marin County, California broke away from
utility monopoly PG&E to establish the state’s first
“Community Choice Aggregation” (CCA).
In theory, CCA enables cities, counties and
businesses to aggregate, in order to purchase clean,
renewable sources of energy at competitive prices.
Linda Hamilton of Shell Energy
North America told reporters that her
company is “optimistic
about the business that could flow
from Community Choice Aggregation
in California,” and that Shell
“played a key role in getting
Marin Energy Authority … on line.”
But, in the case of Marin County, the new utility
found itself unable to compete on the open energy
market without bringing in non-local corporations --
among them Shell Energy North America, a whollyowned
subsidiary of Royal Dutch Shell and EnXco, a
subsidiary of nuclear giant EDF.
It didn’t take long for officials of California’s
first CCA to realize that contracting with two of
the nation’s most notorious corporate polluters,
as financially prudent as it may have seemed at
the time, had some hidden costs of its own.
Having put the county in the untenable position of
supporting the same polluters whose practices they
publicly opposed, Marin’s new energy provider had
also helped pave the path for evermore corporate
control of what many thought would be locally owned
and generated clean energy.
That move has already caused
Marin County’s CCA officials to
lose credibility with at least some
of their natural constituents.
Especially disillusioned are those
who hoped and believed their
new CCA was offering some
version of “energy democracy.”
While Shell and EnXco
have wasted no time in
exploiting their affiliation with
California’s first CCA to parade
their “green ventures” in front
of an unsuspecting public, a
closer look at these companies’
portfolios reveals only a tiny
fraction of their profits being
invested in renewable energy.
Greenwashing aside, the vast
majority of Shell’s earnings go
toward health and environment-destroying technologies
such as hydraulic fracturing, liquefied natural gas
(LNG) and (off and onshore) oil drilling. EnXco does
have some well-publicized investments in wind power,
but its mother company EDF remains the largest
operator of nuclear reactors in the world -- and one of
nuclear power’s biggest investors.