Editor note: This post from one year ago is reprinted for its continuing relevance to the climate-change debate. The “bootleggers” are hard at work in the post-Enron era with nearly 150 companies, lead by Exelon Corp., Entergy Corp., and Constellation Energy Group Inc., buying 30-second television spots running from today through President Obama’s State of the Union address on Wednesday. 

The climate-change public policy debate might be thought of as a straightforward morality play. In one corner, we have the good guys laboring mightily against all odds to save the planet from rampant consumerism, human short-sightedness, and corporate greed. In the other corner, we have the bad guys, laboring mightily to preserve their profits by stoking materialism, economic selfishness, and fear of big government. Behind the curtains of this morality play, however, is a fascinating dance between the “good guys” (the Baptists) and “bad guys” (the bootleggers) to pass some form of mutually beneficial prohibition.…

The higher costs and inferior reliability of government-mandated wind power and solar power are well known to students of the electricity market. Many analyses on wind and solar have documented their real-world problems.

But another negative aspect of wind and solar technologies is their failure to live up to their raison d’être: emissions reduction. As I have explained in a four-part post, firming intermittent electric generation requires very inefficient fossil-fuel generation that creates incremental emissions compared to a situation where there is not wind or solar and fossil-fired generation can run more smoothly. This is a huge insight, a game changer, that could take the renewable energy debate in a new direction entirely.

A number of studies are emerging that quantify both the cost premium of politically-forced renewables and the minimal amounts of emissions reduction (and even notable emissions increase) resulting from their use.…

Temperature trends, Climategate, Copenhagen, IPCC falsification, and now the Massachusetts Revolution–cap-and-trade is dead, the political pundits say. So much for the  inevitability argument that I heard from my colleagues during the Enron years (“come on Rob, get out in front of it and shape it!”), as well as the science-is-settled that had been the Word.

But what about a scaled back energy/climate bill with the key provision of a federal renewables mandate? Has the ‘Massachusetts Revolution’ killed that too?

We will soon find out. But one thing can be certain: Americans from coast-to-coast and border-to-border are going to look more closely at wind power, and I do not believe they are going to like what they see. (Enron, anyone?) Witness the growing complaints from the grass roots–including in-the-trenches real environmentalists–that industrial wind is intrusive, costly, and unreliable.…

January 7, 1997, some 13 years ago, was one of the worst days in my 16-year career at Enron. Enron had already entered into the solar business (1994) in partnership with Amoco (Solarex), and the U.S. wind industry was on its back. Zond Corporation was struggling, and rival Kenetech had recently suspended its dividend and was on the way to  bankruptcy. Enron bought Zond on this day and renamed it Enron Wind Company.

Enron Wind would never turn a profit, and it would be sold in May 2002 by the bankrupt parent to GE. (GE and Enron would have other ominous parallels.)

Enron came in at just the right time for a troubled, undeserving industry by

1. Putting a big-name corporation in the U.S. wind industry for the first time;
2. Issuing countless press releases on ‘wonderful’ green wind for the next several years; and
3. Successfully lobbying Texas politicians to enact the most strict renewable mandate in the country in 1999.