October 9, 2013

Infrasonic Fear Generator : Industrial Wind Turbines

From Monster-tronics:
The Fear Generator can cause a range of strange feelings, anxiety, sorrow, chills, unnerving feelings, heightened emotions, including visions and vibrations in the chest and other parts of the body, in a large percentage of people.

Infrasound refers to extreme bass waves or vibrations, with a frequency below the audibility range of the human ear. Even though these waves can't be heard by us, they can be felt and sensed and have been shown to produce a range of effects in some people.

Based on previous studies, 20% to 60% of people have reported strange feelings when tests were performed at concerts, in pressure chambers, at home, and in test facilities. No tests were conducted in a scary environment. We believe the percentage of people affected in a haunted house setting will be even greater. Most people will feel vibrations in parts of their bodies (commonly the chest area) similar to audible bass but won’t know where it is coming from since they can not hear it. Vibrations in the chest are a common symptom of extreme terror.

Infrasound is very difficult, if not impossible, to recreate from a standard stereo system. Most subwoofers are only rated down to 40 Hz and the amplifiers, filters, and crossover systems can limit the low frequencies you need to hit even further. The Fear Generator is specially designed to produce a specific infrasound frequency that has been scientifically tested to produce these effects in people.

NOTE: A large pipe is required for the Fear Generator and is not included.
From “Wind Turbines and Ghost Stories: The Effects of Infrasound on the Human Auditory System” by Hsuan-hsiu Annie Chen and Peter Narins, UCLA:
High levels of infrasound and low frequency sounds generated by wind turbines pose a potentially serious threat to communities near wind farms. Wind energy companies remain largely dismissive, claiming that wind turbine noise is subaudible, undetectable by humans, and therefore presents minimal risk to human health. However, various cochlear microphonic, distortion product otoacoustic emission, and fMRI studies have demonstrated the detection of infrasound by the human inner ear and auditory cortex. Additional psychosomatic stress and disorders, including the “wind turbine syndrome” and paranormal experiences, are also linked to infrasound exposures. With wind turbines generating substantial levels of infrasound and low frequency sound, modifications and regulations to wind farm engineering plans and geographical placements are necessary to minimize community exposure and potential human health risks.
Also see:  U.S. Patent 6,017,302, Jan. 25, 2000: Subliminal Acoustic Manipulation of Nervous Systems, inventor Hendricus G. Loos
Abstract: In human subjects, sensory resonances can be excited by subliminal atmospheric acoustic pulses that are tuned to the resonance frequency. The 1/2 Hz sensory resonance affects the autonomic nervous system and may cause relaxation, drowsiness, or sexual excitement, depending on the precise acoustic frequency near 1/2 Hz used. The effects of the 2.5 Hz resonance include slowing of certain cortical processes, sleepiness, and disorientation. For these effects to occur, the acoustic intensity must lie in a certain deeply subliminal range. Suitable apparatus consists of a portable battery-powered source of weak subaudio acoustic radiation. The method and apparatus can be used by the general public as an aid to relaxation, sleep, or sexual arousal, and clinically for the control and perhaps treatment of insomnia, tremors, epileptic seizures, and anxiety disorders. There is further application as a nonlethal weapon that can be used in law enforcement standoff situations, for causing drowsiness and disorientation in targeted subjects. It is then preferable to use venting acoustic monopoles in the form of a device that inhales and exhales air with subaudio frequency.


Experiments have shown that atmospheric acoustic stimulation of deeply subliminal intensity can excite in a human subject the sensory resonances near 1/2 Hz and 2.5 Hz. The 1/2 Hz resonance is characterized by ptosis of the eyelids, relaxation, drowsiness, a tonic smile, tenseness, or sexual excitement, depending on the precise acoustic frequency near 1/2 Hz that is used. The observable effects of the 2.5 Hz resonance include a slowing of certain cortical functions, sleepiness, and, after long exposure, dizziness and disorientation. The finding that these sensory resonances can be excited by atmospheric acoustic signals of deeply subliminal intensity opens the way to an apparatus and method for acoustic manipulation of a subject's nervous system, wherein weak acoustic pulses are induced in the atmosphere at the subject's ears, and the pulse frequency is tuned to the resonance frequency of the selected sensory resonance. The method can be used by the general public for control of insomnia and anxiety, and for facilitation of relaxation and sexual arousal. Clinical use of the method includes the control and perhaps a treatment of anxiety disorders, tremors, and seizures. A suitable embodiment for these applications is a small portable battery-powered subaudio acoustic radiator which can be tuned to the resonance frequency of the selected sensory resonance.

There is an embodiment suitable for law enforcement operations in which a subject's nervous system is manipulated from a considerable distance, as in a standoff situation. Subliminal subaudio acoustic pulses at the subject's location may then be induced by acoustic waves radiating from a venting acoustic monopole, or by a pulsed air jet, especially when aimed at the subject or at another material surface, where the jet velocity fluctuations are wholly or partly converted into static pressure fluctuations.

The described physiological effects occur only if the intensity of the acoustic stimulation falls in a certain range, called the effective intensity window. This window has been measured in exploratory fashion for the 2.5 Hz resonance.
And: Cooperative Measurement Survey and Analysis of Low-Frequency and Infrasound at the Shirley Wind Farm
We consider a 1987 paper entitled: Motion Sickness Symptoms and Postural Changes Following Flights in Motion Based Flight Trainers [R.S. Kennedy, G.O. Allgood, B.W. Van Hoy, and M.G. Lilienthal, Journal of Low Frequency Noise and Vibration, Vol. 6, No. 4, 1987, pp. 147-154].

This paper was motivated by Navy pilots becoming ill from using flight simulators. The problems encountered by the Navy pilots appear to be somewhat similar to those reported by the Shirley residents. This 1987 paper focused on whether the accelerations in a simulator might cause symptoms similar to those caused by motion sickness or seasickness. Figure 1 from the reference shows the advent of motion sickness in relation to frequency, acceleration level and duration of exposure. To develop these data, subjects were exposed to various frequencies, acceleration levels and exposure durations, and the Motion Sickness Incidence (MSI) was developed as the percentage of subjects who vomited. Figure 1 shows two delineated regions. The lower region is for an MSI of 10%. The top end of this region is for an exposure duration of 30 minutes and the bottom end is for eight hours of exposure. The upper delineated region has the same duration limits but is for an MSI of 50%. The acceleration levels indicated for the SH3 Sea King Simulator show that the accelerations in the y and z direction went well into the nauseogenic region as defined by the Navy, whereas the P3-C Orion simulator had comparable accelerations in the x direction and lower accelerations in the y and z direction. Not surprisingly pilots' reports of sickness increased dramatically after exposure to the SH3 simulator while exposure to the P3-C simulator had virtually no effect on reports of sickness.

What is important here is the range encompassed by the delineated regions of Figure 6. Essentially, this nauseogenic condition occurs below 1 Hz; above 1Hz it appears that accelerations of 1G would be required for the nauseogenic condition to manifest itself. While the Navy criteria are for acceleration, in Shirley we are dealing with pressures in a closed cavity, the house. Acceleration of the fluid filled semi circular canal in the ear will manifest itself as force on the canal. The similarity between force on the canal from acceleration and pressure on the canal from being in a closed cavity suggest that the mechanisms and frequencies governing the nauseogenic region are very similar for both pressure and acceleration.

As the generated electric power of a wind turbine doubles the sound power doubles and the blade passage frequency decreases by about 1/3 of an octave. The wind turbines at Shirley have a blade passage frequency of about 0.7 Hz. This suggests that a wind turbine producing 1 MW would have a blade passage frequency of about 0.9 Hz, and on Figure 6, a change from 0.7 Hz to 0.9 Hz requires a doubling of the acceleration for the same level of response. Thus, it is very possible that this nauseogenic condition has not appeared frequently heretofore because older wind farms were built with smaller wind turbines. However, the 2 MW, 0.7Hz wind turbines clearly have moved well into the nauseogenic frequency range.

This analysis suggests that similar problems to the problems in Shirley can be expected for other wind turbines that have the same or lower fundamental frequency. The Navy criteria suggests that to maintain the same level of health related effects as have occurred heretofore, the levels of a 2 MW, 0.7 Hz wind turbine as experienced in the community must be 6 dB lower than those for 1 MW, 0.9 Hz wind turbine. Moreover, Figure 6 does not bode well for future larger wind turbines if they go even lower in frequency.
wind power, wind energy, wind turbines, wind farms, environment, environmentalism, human rights

September 30, 2013

Gullible for Wind Power

Ketan Joshi writes: "Not all climate 'skeptics' are wind farm opponents, and not all wind farm opponents are climate 'skeptics', but the region in which those two groups overlap is a truly fascinating case study into how we filter evidence according to our respective worldviews."

This is an important acknowledgement that there are indeed wind energy opponents (or 'skeptics') who are not climate skeptics. In his continuing effort to tar wind energy skeptics with the same brush as climate skeptics, however, Joshi ignores the much more dissonant overlap of climate 'believers' and wind energy supporters.

He decries what he sees as gullibility (or worse) of those who 'believe' the evidence against wind, even as he counts on the gullibility of those who 'believe' in wind to support his defense and promotion of it.

Joshi finds it "fascinating" that one can reject the findings of climate science yet accept those of adverse health effects from wind turbines, insisting that there is "a complete lack of evidence" for the latter. The reference he provides is a film – produced by a wind advocacy group with many industry-connected members – showing unaffected hosting landowners. Joshi apparently takes this single piece of evidence completely on faith, despite its overt agenda, even as he completely rejects all testimony of harm (see, for but a few examples, these victim impact statements).

So one notes that Joshi himself exemplifies how evidence is filtered according to one's worldview. In this case, it is easily understandable in that he works for a wind developer. His general claims of scientific rigor are thus called into doubt when he so casually misrepresents the science of wind energy. His devotion to science seems to go only so far as it supports his and his company's interests.

That's obvious, really, to everyone except, apparently, himself. Just as he tars all views of climate skeptics because of their view on climate change, like many that promote the industry he asserts that faith in wind energy unquestionably follows from the acceptance of climate science. Rather than acknowledge any evidence against wind energy, he bolsters his faith in it by lashing on other examples of accepted science, such as the benefit of vaccines and the truth of evolution, shamelessly aligning industry self-interest with the indisputable achievements of Salk and Mendel. Another tactic is to detect not only scientific heresy anywhere in the views of wind power's critics, but also any hint of racism, sexism, xenophobia, homophobia, etc. to further justify ignoring and even mocking the evidence. Even worse, corporate wind defenders often gloat over the money they make and spend and dismiss critics as merely envious, as cynically angling, like themselves, for a big payoff.

This does not, of course, cause the evidence to go away that wind energy is neither a viable energy source nor a meaningful contributor to lower emissions, and that it has a high level of adverse impacts relative to its benefits.

[[[[ | ]]]]

Despite the acknowledgement that "[n]ot all climate 'skeptics' are wind farm opponents, and not all wind farm opponents are climate 'skeptics'", Joshi's main purpose remains the nonsensical defense of wind energy as a good simply because many climate skeptics bash it. By bashing the climate skeptics in return, he avoids addressing their critiques – which many climate non-skeptics share – of wind energy. In short: 'Because they are wrong about climate science, they are also wrong about wind energy.'

But are climate skeptics who support wind power also therefore wrong about the latter? Are climate non-skeptics who agree that wind energy has serious shortcomings also wrong about climate science? At least the latter possibility is blocked by denying that climate non-skeptics really are: 'Because they oppose wind power, they are dishonest about supporting climate science.' In other words, it is really only one's view of wind energy that is tested, because that is in fact the only true interest. For the former question, corporate representatives like Joshi are quite able to separate the issues of climate science and wind power when climate skeptics support the industry (a common situation in the U.S. among legislators at the subsidy trough). [Update, Jan. 29, 2014:  Joshi has decried Greenpeace as "anti-science" on the evidence of their destroying a GMO research crop. But Greenpeace also supports corporate wind power, which is "pro-science" according to Joshi, whose "science" is clearly an ad hoc fetish.]

Circularity is not a concern, because the premise is not what it might appear to be: not climate science, fossil or nuclear fuels, particulate pollution, nor the Koch Brothers. It is simply the desire to erect giant wind turbines wherever possible.

Those who support that goal repeatedly show that their interest is not science, but simply to sell their product. Thus they misrepresent both.

wind power, wind energy, wind turbines, wind farms, environment, environmentalism

September 24, 2013

350.org: Just Another Wall St Greenwash Department

Cory Morningstar writes at Counterpunch:

Anne Petermann writes: ... “if you focus solely on eliminating fossil fuels without changing the underlying system, then very bad things will take their place because it is the system itself that is unsustainable. It is a system designed to transform ‘natural capital’ and human labor into gargantuan profits for an elite few: the so-called ‘1%.’ Whether it’s driven by fossil fuels or biofuels or even massive solar and wind installations, the system will continue to devour ecosystems, displace forest-based communities, Indigenous Peoples and subsistence farmers from their lands, crush labor unions and generally make life hell for the vast majority of the world’s peoples. That is what it does.”

... the so-called climate movement has sabotaged any chance of mitigating a full scale global ecological collapse, having instead cleared the way for corporate profiteering, deforestation, fund-raising and full-out omnicide. ...

A key design element within the non-profit industrial complex is that “movements” are created top down. In the case of Rockefeller’s 350.org/1Sky, the game is simply this: 350.org locals take their marching orders straight from the top (350.org International) while “the top” (McKibben et al) take their marching orders directly from their funders – and in the case of 350.org’s Do the Math Tour, those funders are Wall Street investors.

McKibben, along with key 350.org staff, developed the divestment campaign in consultation with Ceres Investors – referred to fondly as their “Wall Street friends.”

Such loyalties are par for the course in the corporate enviro world where Wall Street execs can be referred to as “our Wall Street friends.” Never mind that Wall Street is the very root cause of our multiple and ever accelerating ecological and economic crises, not to mention the global food crisis. These crises are not truly “crisis” in a spontaneous sense, rather they are strategic by design with the aim of furthering corporate profit, which is simply insatiable. ...

One must take note of 350.org’s obsession with fossil fuels exclusively. With certainty, 350.org, in tandem with the non-profit industrial complex, is strategically preparing the populace to accept what Guy McPherson calls the “third industrial revolution.” This “climate wealth” agenda will include false solutions such as biomass, unbridled “green” consumerism, carbon market mechanisms such as REDD, etc. What it will not include is: the urgent necessity to destroy the expanding military empire, to transition from/dismantle our current economic system, to address the industrialized livestock industry, to massively scale back and conserve, to employ tactics of self-defense by any means necessary, nor anything else that is imperative to address if we are to mitigate full-out omnicide. [See also: : “White House misinformation and inaction regarding greenhouse gases”.] In a nutshell, the agenda will not include anything that would actually pose any meaningful threat to the system. It’s always divide and conquer with the corporate/elite-funded NGOs. The point is to ensure the masses fight meaningless battles and never “connect the dots,” to use 350.org’s phrase. Just like the Avaaz founder MoveOn.org, 350.org successfully induces consent. ...

We are about to witness the global transition to profitable false solutions under the guise of “green economy” coupled with the complete commodification/privatization of the shared commons by the world’s most powerful corporations. All while they simultaneously greenwash themselves as noble stewards of the Earth.

[Also see: Activist Malpractice” by Michael Donnelly]

environment, environmentalism, human rights, animal rights, vegetarianism, veganism, Vermont, anarchism, ecoanarchism

September 9, 2013

Two songs for you

The Wanton Seed, sung by Bert Lloyd, from The Bird in the Bush (1966)


My Bonny Boy, sung by Anne Briggs, from The Hazards of Love (1964)


September 7, 2013

Report on Kyoto — Enron wins — At what price?

"On the business front: During the next year there will be intense positioning of organizations to capture an early lead in a variety of carbon trading businesses.

"The endorsement of joint implementation within Annex-1 is exactly what I have been lobbying for and it seems like we won.

"The clean development will be a mechanism for funding renewable projects. Again, we won. (We need to push for natural gas firing to be included among the technologies that get preferential treatment from the fund.)

"The endorsement of emissions trading was another victory for us. ...

"Through our involvement with the climate change initiatives, Enron now has excellent credentials with many “green” interests including Greenpeace, WWF, NRDC, GermanWatch, the US Climate Action Network, the European Climate Action Network, Ozone Action, WRI, and Worldwatch. This position should be increasingly cultivated and capitalized on (monetized). ...

"This agreement will be good for Enron stock!!"

—John Palmisano, Senior Director for Environmental Policy and Compliance, Enron, Dec. 12, 2997  [see below]
(((( o ))))


To: Terry Thorn, Joe Hillings, Cynthia Sandherr, Jeff Keeler, Fiona Grant, Hap Boyd, Bill Shoff, Dan Badger, Tom Kearney, Lynda Clemmons, Bruce Stram, Mike Terraso, Rob Bradley, Jim O’Neill, John Hardy
From: John Palmisano
Date: December 12, 1997
Subject: Implications of the Climate Change Agreement in Kyoto & What Transpired

This memo summarizes the implications of the agreement reached in Kyoto and also describes what I was doing and provides some observations.


If implemented, this agreement will do more to promote Enron’s business than will almost any other regulatory initiative outside of restructuring of the energy and natural gas industries in Europe and the United States. The potential to add incremental gas sales, and additional demand for renewable technology is enormous. In addition, a carbon emissions trading system will be developed. While the trading system will be implemented by 2008, I am sure that reductions will begin to trade with 1-2 years. Finally, Enron has immediate business opportunities which derive directly from this agreement.

On the policy-front: There will be a great number of country-specific and international meetings related to every aspect of this agreement. I do not think it is possible to overestimate the importance of this year in shaping every aspect of the agreement.

Three issues of specific importance to Enron are: (1) the rules governing emissions trading, (2) the rules governing joint implementation within Annex-1, and (3) the rules governing the proposed clean energy fund (which promises to dwarf the GEF as a fund for wind, solar, and power plant conversions.)

On the business front: During the next year there will be intense positioning of organizations to capture an early lead in a variety of carbon trading businesses.

The endorsement of joint implementation within Annex-1 is exactly what I have been lobbying for and it seems like we won.

The clean development will be a mechanism for funding renewable projects. Again, we won. (We need to push for natural gas firing to be included among the technologies that get preferential treatment from the fund.)

The endorsement of emissions trading was another victory for us.

Highlights of the Agreement

38 developed countries are required to reduce greenhouse gas emissions to or below 1990 levels by 2012.

The U.S. reduction objective is 7%, the European Union is 8%, and Japan is 6%; therefore, it is not possible (or at least credible) that Congress can say the United States is at a comparative disadvantage vis-à-vis its main trading partners or competitors since the EU and Japan have higher control targets and are more “carbon-lean” than are we.

Six gases are included (CO2, CH4, N2O, HFCs, PFCs, and SF6).

Emissions trading is included. Details of an international system are to be worked out in 1998.

A “clean development fund” is included. The fund would allow for emission offsets from projects in developing countries.

Joint implementation for Annex-1, developed countries and the transitional economies, is included. This means that Enron projects in Russia, Bulgaria, Romania or other eastern countries can be monetized, in part, by capturing carbon reductions for sale back in the US or other Western countries.

While I do not have the final version of the agreement, I do have the first and second versions. The latest version is not on the world-wide web.

What I Was Involved In

I gave three speeches and received an award on behalf of Enron. The speeches dealt with emissions trading, energy efficiency/renewable, and the role of business in promoting clean energy outcomes. The award came from the Climate Institute and was for Ken Lay and Enron for our work promoting clean-energy solutions to climate change. The other recipients were Sven Auken, MP and Minister for Energy and Environment in Denmark, and MP and former Environment Minister for the UK, John Gummer.

I have met Gummer and Auken several times before and it was nice for them to hear Enron praised so much. (I gave a speech with Gummer last Saturday and it was the third time we have been on the podium together. He is someone who still retains considerable influence in the UK and Europe and someone Enron might want to cultivate.)

I was also involved in a press conference.


I believe that it will be impossible to separate electricity restructuring from climate change as a domestic political issue. The administration has signaled its view that the two issues are intertwined.

At yesterday’s White House press conference, this connection was underlined by the comments from Tom Kasten, President of Trigen Corporation who spoke in favor of the climate change agreement and its linkage to restructuring. His remarks had to be cleared by the White House.

These remarks are entirely consistent with every other signal from the Administration’s climate change team.

Through our involvement with the climate change initiatives, Enron now has excellent credentials with many “green” interests including Greenpeace, WWF, NRDC, GermanWatch, the US Climate Action Network, the European Climate Action Network, Ozone Action, WRI, and Worldwatch. This position should be increasingly cultivated and capitalized on (monetized).

(Parenthetically, I heard many times people refer to Enron in glowing terms. Such praise went like this: “Other companies should be like Enron, seeking out 21st century business opportunities” or “Progressive companies like Enron are….” Or “Proof of the viability of market-based energy and environmental programs is Enron’s success in power and SO2 trading.”)

Developing countries have acquired substantial negotiating power. The shift in negotiating power to India, Brazil, China, and the G-77 has been gradual and pronounced.

The EU negotiated as a group. Until two years ago, they negotiated as individual countries. While there are still individual country interests, the EU retains substantial power when working together. It was this cohesiveness that lead to a more stringent agreement.

EU delegates asked for my input into the agreement to oppose some of the positions espoused by some US delegates. In particular, the US was advocating no rules governing the trading of carbon emissions because rules would “inhibit trading.” My position is that rules defining who owns what reductions, how reductions are traded, how they are tracked, and liability rules will help promote trading since rules give both buyers and sellers more confidence in the commodity.

While some companies and trade associations continue to criticize developing countries for not doing more, no company wants to be specific on this issue. To the extent any company does, they will hide under the shield of a trade association. I think that shield will soon be pierced. I believe that some companies will soon break from the line that developing countries should do more. It is a weak position in terms of equity and suicidal in terms of their commercial interests in these countries.

An increasingly ugly trend has become evident to the environmental NGO community and the delegates from developing countries. They see the argument about developing country participation as a thinly disguised recycling of the early twentieth century fear-mongering characterized by the so-called “yellow-peril” or invasion of the US by Asian peoples.

The developing country delegates see the argument of the carbon lobby that the US will lose markets to developing countries as empty and racist — they see energy-intensive imports to the US coming from Japan and Germany in terms of automobiles (and these are high cost energy areas), while economic growth in developing countries is fueled by local growth or Western industries requiring low cost of labor, low cost for land, or permitting flexibility for new plants.

Enron should not participate in any argument like this because it hurts our credibility with developing countries, NGOs, and developed country governments.

I should have a copy of the agreement today.

The next year will be very intensive because the structure of the agreement exists, business opportunities are being defined, the rules governing emissions trading will be developed, and identifying, financing, and managing JI projects will be important.

One final point, Terry, if you remember, I predicted an agreement that would yield a 5% reduction by 2010; we got 7% by 2012. I now predict ratification within 3 years. I predict business opportunities within 18 months. I predict this agreement will have very significant influences on the energy sector within OECD and transitional economies and will accelerate renewable markets in developing countries.

This agreement will be good for Enron stock!!

(((( o ))))

Enron’s Ken Lay asks for Texas Gov. Bush’s help in securing tax credits for wind [letter, Aug. 10, 1998]

How the White House Energy Plan Benefitted Enron [U.S. House of Representatives report, Jan. 16, 2001]

"The gap between wind and combined-cycle gas is substantial when subtle factors such as tax preferences, reliability/dispatchability, and transmission are taken into account.

"My estimate is that the all-in economic cost of wind is double the cost of gas and triple the cost of surplus power. Accelerated depreciation may be an even bigger component of this underlying competitive gap than the federal tax credit. Gas would have to stop improving or get worse as wind gets better to reach near-parity – not a likely scenario.

"Wind needs storage if not another fuel backup, yet storage is estimated to cost between $400 and $1,000 per kilowatt (DOE/EPRI, 1997). If wind can’t compete today with the double tax benefit and upstream DOE subsidies that have averaged over 3 cents per produced kWh in the last 20 years, when will it compete?"

—Robert Bradley, Corporate Director of Public Policy Analysis, Enron, Oct. 28, 1998  [see below]

(((( o ))))


Author: Rob Bradley at CORP_1_PO
Date: 10/28/98 4:13 PM
Priority: Normal
TO: Kenneth Lay at ENRON
Subject: Enron Wind Decision

Please see the attached on reasons to sell the wind subsidiary. I hope this memo contributes to the right decision.

Some Reasons for Enron to Sell the Wind Subsidiary

On the presumption that you are mulling over the sale of the wind subsidiary and are getting lobbied to not do so within the company, allow me to make some arguments in favor of exiting.

I do not know the economics of our wind investment or its potential selling price. There are also issues of core competency that I defer on. I do know that the purchase was more of an image play for our mass retail electricity effort than natural marketplace economics. Natural gas technology has made wind (and solar outside of its distributed uses) unnecessary for the foreseeable future in the U.S. and other methane-rich areas of the world.

With Enron’s niche as a “green” energy provider for the masses in doubt, the image component is less compelling. Otherwise, our image is helped and hurt by the investment. We get accolades from the environmental community but criticism from the free-market and conservative community for our subsidy appetite and Kyoto leadership.

Here are my reasons to exit:

1. You mentioned in our December meeting that if I could prove that wind could not compete with gas in the long run, you would sell the subsidiary. The gap between wind and combined-cycle gas is substantial when subtle factors such as tax preferences, reliability/dispatchability, and transmission are taken into account.

My estimate is that the all-in economic cost of wind is double the cost of gas and triple the cost of surplus power. Accelerated depreciation may be an even bigger component of this underlying competitive gap than the federal tax credit. Gas would have to stop improving or get worse as wind gets better to reach near-parity – not a likely scenario.

Wind needs storage if not another fuel backup, yet storage is estimated to cost between $400 and $1,000 per kilowatt (DOE/EPRI, 1997). If wind can’t compete today with the double tax benefit and upstream DOE subsidies that have averaged over 3 cents per produced kWh in the last 20 years, when will it compete?

2. Enron with wind is really competing against Enron with natural gas. New wind capacity displaces output from existing gas-fired plants in locals such as California where gas is the marginal fuel most of the time. Wind also (incrementally) postpones the need for new gas-fired capacity. Renewable mandates will hurt the gas market in this regard.

3. Wind is almost a pure subsidy play, which means that Enron will be at odds with the market and must continually intervene into the political processes to extend subsides and/or create new ones. This is an expensive process and may trade away what we are lobbying for elsewhere.

4. Fundamental tax reform would severely limit wind by removing the federal tax credit and accelerated depreciation. Fundamental tax reform will have political life with a Republican president in the post-2000 period. Green pricing could collapse with the end of tax preferences since the “green” premium would be too high. (This is why quotas are the only solution to make uneconomic renewable really stick.) It would be opportune to sell out before this “political risk” gets factored into the equation.

5. Wind has a negative dynamic at work. The more wind construction, the more prime sites are utilized and the more its economic and environmental drawbacks will become transparent. The Energy Information Administration is finding that its cost estimates for wind are too optimistic given that the best wind sites often have higher up-front and operating costs.

6. Wind as a Kyoto play will be burdened by all the Kyoto controversies – the growing questions about the science, the economics of meeting just one Kyoto, and political forces that will work to cheapen compliance in a Kyoto case (early-credit inflation). Even with subsidies, increased profitability is not assured given that competition grows with the subsidies.

7. With the sale of our solar and wind businesses, Enron can get off of a hardcore Kyoto line. This issue is turning our government affairs department into rent seekers. (Latest example: how do we fashion an early crediting program where it helps us at the expense of other businesses.) The more Enron pushes early implementation to give Kyoto life, the more we will be setting up a regulatory regime (“climatism”) with a life of its own that will cut both ways for our many business interests.

8. With uneconomic renewables off of Enron’s plate, your speeches can get away from spin and more toward underlying energy economics to maximize your credibility. For example, instead of showing the slide about the falling cost of renewables (which begs the question of how much the cost of other technologies including gas have fallen), you can get into the relative economics of different renewables versus natural gas.

As an economics Ph.D. and visionary, you have a leadership responsibility to promote good thinking and economic energy strategies in place of energy faddism (such as wind). The corporation should be positioned to reflect sound underlying economics (consumer demand) and not short-term political plays as much as possible – or at least the corporation should be taken out of political plays as soon as changing conditions permit.

9. Good corporate citizenship should include not only an environmental ethic but a market ethic of not seeking discretionary government subsidies. Enron can set an example that could result in accolades from the other side of the political spectrum.

Democracy according to the CEO of the free world

The people don't support this action, so the congress should vote their conscience, that is, support this action against the will of the people, because if they don't I'll do it anyway.

You see? Conscience is the prerogative of the leader. The people don't have it. Their disagreement with this action is a failure of marketing. Their disagreement is thus testimony to the righteousness of this action, because it is so important that we couldn't be bothered with trying to make a credible case for it. Consequently, until the people demonstrate the full benefit of our sales pitch, that is by supporting this action, there is no reason to consider their views.


Also:  Such a blatant violation of international law must be punished to discourage others, even if we have to violate international law to do so. And it would compromise the power of international law if we had to show irrefutable evidence to justify this action, because nobody else cares about international law as much as we do.

More:  11 years ago today: "From a marketing point of view," said Andrew H. Card Jr., the White House chief of staff who is coordinating the effort to persuade the public, the Congress and the allies of the need to confront the threat from Saddam Hussein, "you don't introduce new products in August."

And:  “Right makes Might makes Right.” (circular logic of imperial prerogative)

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