The pending effort of Wisconsin's governor and majority-GOP legislature to bust the the public employee unions has overshadowed the authority in the same bill to sell off, or contract for the operation of, state-owned energy facilities without competitive bids, reviews by the Wisconsin public service commission, appraisals, or any other protections of the public financial interest. Even the former Soviet Union wasn't this sleazy when it sold out to its crony capitalists. From Mike Konczal's report (emphasis his):
16.896 Sale or contractual operation of state−owned heating, cooling, and power plants. (1) Notwithstanding ss. 13.48 (14) (am) and 16.705 (1), the department may sell any state−owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state. Notwithstanding ss. 196.49 and 196.80, no approval or certification of the public service commission is necessary for a public utility to purchase, or contract for the operation of, such a plant, and any such purchase is considered to be in the public interest and to comply with the criteria for certification of a project under s. 196.49 (3) (b).
Konczal then quotes from his friend Ed at ginandtacos.com:
If this isn’t the best summary of the goals of modern conservatism, I don’t know what is. It’s like a highlight reel of all of the tomahawk dunks of neo-Gilded Age corporatism: privatization, no-bid contracts, deregulation, and naked cronyism. Extra bonus points for the explicit effort to legally redefine the term “public interest” as “whatever the energy industry lobbyists we appoint to these unelected bureaucratic positions say it is.”
In case it isn’t clear where the naked cronyism comes in, remember which large, politically active private interest loves buying up power plants and already has considerable interests in Wisconsin. Then consider their demonstrated eagerness to help Mr. Walker get elected and bus in carpetbaggers to have a sad little pro-Mubarak style “rally” in his honor. There are dots to be connected here, but doing so might not be in the public interest.
Who do Ed's links go to? Koch Industies.
Update on Tuesday, February 22, 2011 at 07:36AM by
Skeptic
Yves Smith makes the important point that privatizing infrastructure is a terrible idea even if there are no sleazy crony deals. It mortgages our children's future just as surely as government borrowing. Proceeds of such sales may be completely spent within the first year, and then in every future year the government has to find more cash to pay for the use of the sold asset or its output. Also, the government is at the mercy of the private owner to make new investments that may be needed, keep up with maintenance, and otherwise operate appropriately. This is the government equivalent of burning the furniture to keep the house warm--it is the last desperate act before the occupants freeze to death.
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