Independent Energy News, Analysis & Opinion from a Humanitarian Perspective   (Contact the Editor)
Fourth Quarter 2011
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The Greening of Disaster Capitalism
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.
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line Read Norman Solomon ‘Democracy instead of “corporatocracy”’ on the Editorial Page. Go to the Editorial Page > line

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