A Free-Market Energy Blog

“Let’s Try a Free Market in Energy” (Letter from Charles Koch to FORTUNE Magazine in 1977 in Response to ARCO’s Thornton Bradshaw’s ‘My Case for National Planning’)

By -- October 7, 2010

[Editor Note: This letter by Koch Industries’s CEO Charles G. Koch, addressed to Fortune Editor-in-Chief Hedley Donovan, provides a pro-free market rebuttal to ARCO’s CEO Thornton Bradshaw’s “My Case for National Planning” (Fortune, February 1977).

Koch’s scholarly effort is reproduced below as a historically important document in the energy debate. It is authored by a rarity of rarities, a principled free-market capitalist. The context and timeliness of the rebuttal was stated in the Libertarian Review at the time:

While this essay was only the latest in a series of attacks on a free market economy and defenses of National Economic Planning to appear over the past few years by intellectuals, businessmen and labor leaders alike, Bradshaw’s piece deserves special scrutiny. For it comes to us from a man who both is a leading representative of American major oil companies, and was a member of Jimmy Carter’s task force on energy during the 1976 presidential campaign.

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Sen. Bingaman’s Insidious National “Renewable Electricity Standard” (S. 3813)

By Glenn Schleede -- October 6, 2010

On September 21, 2010, U.S. Sen. Jeff Bingaman (D-NM) introduced a bill[1] that would create an insidious national “Renewable Electricity Standard” (RES). Bingaman now has 32 cosponsors but expects 60.

The bill would result in higher monthly bills for millions of home owners and renters, farms, businesses, industries, hospitals, educational institutions, and any other organization that uses electricity.

Despite the intense citizen displeasure with Congress, Bingaman’s RES bill shows that both Democrats and Republicans, while in Washington, are eager to favor special interests and their lobbyists while ignoring the adverse impact of their actions on the nation’s ordinary citizens, consumers and taxpayers. The bill belies Republican claims that they favor less federal government intrusion, control, and damage.

Key Provisions

The bill would require that, by 2021, 15% of the electricity sold by an electric utility must be generated from wind or certain other “renewable” energy sources, or from energy efficiency.…

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Ken Lay to California II: BLOCK the PROP (A.B. 32 is ‘Not a Sprint but a Marathon’)

By Robert Bradley Jr. -- October 5, 2010

Yesterday, an op-ed by the late Ken Lay urged for climate action as a easy winner in benefits versus costs–something that was hardly true when he said it and known to be untrue now. Drastic action barely registers on the temperature/sea level/precipitation scale.

Here is Ken Lay (with Roger Sant) a year later with more advice for California in its current debate over whether to pass California’s Prop. 23, a measure to suspend the Global Warming Solutions Act of 2006 (AB 32).

Enron had seven profit centers tied to regulating carbon dioxide (CO2). What ‘Enrons’ are involved in the climate scare today?

The op-ed from September 1998 follows:…

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Ken Lay to California I: BLOCK the PROP (A.B. 32 is ‘An Ounce of Global-Warming Prevention’)

By Robert Bradley Jr. -- October 4, 2010
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“Why Energy Efficiency Does Not Decrease Energy Consumption:” Comment on Harry Saunders

By Michael Shellenberger & Ted Nordhaus -- October 1, 2010
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International Cap-and-Trade Taxation: U.S. Beware!

By Matthew Sinclair -- September 30, 2010
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Is Windpower the Ethanol of Electricity? (Part II: Environmental Issues)

By Ben Lieberman -- September 29, 2010
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Is Windpower the Ethanol of Electricity? (Part I: Economics)

By Ben Lieberman -- September 28, 2010
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Windpower: Not as Free As You Think

By -- September 27, 2010
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Energy and the Dodd-Frank Act: More Bad from the Party in Power (more employment for lawyers and consultants)

By Sam Van Vactor -- September 24, 2010
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