A Failed Perry Energy Initiative
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Scott Detrow
Trying to read up on Texas Governor Rick Perry, before tomorrowâs big Pittsburgh energy speech?
Bloomberg Businessweek is a good place to start. The magazine has published a lengthy profile on the Republicanâs record in Austin, including this bit about a failed energy initiative.
Perryâs electricity initiative met the same fate for similar reasons. In 2006 the stateâs largest electric utility, TXU Energy, announced plans to build 11 coal-fired power plants. This would have helped meet an obvious need. Texas is unique in having an electricity grid separate from the rest of the countryâs, built that way in the 1930s to avoid federal oversight. But this makes it difficult to import power when there are shortages. Rolling blackouts are a continual problem.
The source of the new powerâcoalâguaranteed an outcry. Rather than go out and try to build support, Perry bypassed the public and the legislature and issued an executive order accelerating the permits, thereby intensifying the opposition. He argued, correctly, that the state needed to generate more power. But he either didnât anticipate or didnât care who would objectânot only environmentalists but also whole swaths of suburban Republicans. Perryâs order was challenged in court and found unconstitutional. A private equity group later bought TXU and scrapped most of the plans.
Other articles worth reading: a hard look at Perryâs job-creation record from the National Journalâs Alex Roarty, and the Texas Tribuneâs PerryPedia.