Background on the destabilization of California’s economy by ENRON

Few Californians understand the significance that big business energy played in the destabilization of California’s economy in 2003. Very little has been written on the subject. However, many California’s may remember the electrical “black-outs” that plagued the State immediately prior to the recall initiative launched to recall then Governor Gray Davis.

Some observers have referred to the California ENRON scandal as the corporate crime of the century.

The short-term popularity of California’s new Governor (Arnold Schwarzenegger) was largely acquired by the re-engineering of California’s workers compensation system under Senate Bill 899; which gutted the penalties associated with unnecessary denials and delays of providing medical care to injured workers. At least 10,000 Californians have been “unfairly denied” workers compensation benefits by official admissions of the Governor’s staff (see Carrie Nevans, 12/16/2006 press release).

Now the Governor has focused his energies on “Global Warming”, which is an interesting shift away from his historic ties to big business energy (like ENRON).