Who’s minding the store?

The circus (Texas legislature) made its way back into Austin yesterday to hold a hearing on CenterPoint’s ineptness in its efforts to restore power following Hurricane Beryl.

While many of the senators showed anger and indignation during the day long testimony (State Senator Paul Bettencourt was awarded most outraged committee member of the hearing), it raised the question of where the buck stops.

Public Utility Commission Chairman Thomas Gleeson admitted that the PUC has not held utility companies accountable and that “I think we need a comprehensive look at how we fund utilities and how they prepare for storms” (you think said everyone?). It is shame that once again, we are being reactive rather than proactive.

The Public Utility Commission of Texas is in charge of regulating the state’s electric, telecommunication, and water and sewer utilities, implements respective legislation and provides customer assistance in resolving consumer complaints. The chairman and commissioners were all appointed by Texas Governor Greg Abbott.

Bettencourt said CenterPoint had “defrauded” rate payers who are now facing growing utility bills after state regulators allowed CenterPoint to recoup the cost plus a 6.5% profit for massive generators that sat on the sidelines during the storm.

Does anyone else see the irony here? State regulators set up the rules to allow CenterPoint to “defraud” its customers. If they (CenterPoint) are playing by the rules, shouldn’t we look at who makes the rules in the first place (Et Tu Brutus?)?

Bettencourt also accused CenterPoint of electing to spend money on the generators rather than clearing trees and vegetation that knocked out power lines, because CenterPoint can make a profit on the generators, but isn’t that the point of being a publicly traded company? The stock value as of today (7.30.2024) is down 5.53% over the past month. You don’t think there is another group people upset about that?

Capitalism promotes free market conditions, whereas socialism incorporates certain elements of centralized economic planning. Does the senator suggest we need to become socialists when it comes to powering Texas?

So how does this end? My guess is the buck will stop in somebody’s wallet courtesy of the consumer.  

Here we go again

“Insanity is doing the same thing over and over again and expecting different results” – Albert Einstein

The city of Houston took it on the proverbial chin once again when Hurricane Beryl struck the Texas gulf coast. Although only a Category 1 storm, Beryl’s impact left more than 2.2 million customers without electricity and damaged countless homes and automobiles. The death toll continues to grow with at least 23 people having died due to various storm related causes as of this post.

The finger pointing began even before recovery efforts started with CenterPoint being the main target of people’s anger. Politicians have been holding press conferences and updates demanding answers on why the energy giant was not ready to deal with what was supposed to be a minor storm.

“Power companies along the Gulf Coast must be prepared to deal with hurricanes, to state the obvious,” said Texas Governor Greg Abbott.

Now to be fair, building an electrical grid that can withstand hurricane force winds is not easy. Houston’s geography makes putting lines underground problematic and very expensive (guess who would pick the check on that, it ain’t the power company ). Heavy vegetation (aka The Livable Forest) in many communities also make restoring power a nightmare for power companies. People love living among the tall trees until they fall on a power line, or worse a roof.

It is also a big task to coordinate line men and women to come from other states to help repair the grid. Each grid is different and requires workers are trained so they can safely make the necessary repairs. Plus you have to provide housing, food and other resources all to a moving target. Remember weather forecasters predicted the storm was first supposed to hit Brownsville, then they said Corpus Christi and then maybe Matagorda Bay. Again, it’s not easy.

But, to also be fair, one of the key components of a crisis is effective communication and that’s where CenterPoint clearly fell flat. Non-working outage maps, lack of emails/texts to customers and inconsistent messaging with the media threw fuel on a fire that was already raging. And why on earth would media tell its audience to go to the CenterPoint Outage map knowing it did not work.

Person on coach

It also did not help their messaging when the CEO was interviewed next to a thermostat showing the room at a comfortable 70 degrees. Where were the public relations people? They should have had him on-site where repairs were taking place. That photo would have helped demonstrate his commitment to working toward restoring power.

Still the politicians continue their media circus, grandstanding and acting surprised, very much like Captain Louis Renault in Casablanca who is shocked that gambling is taking place at Rick’s Café while collecting his winnings. One has to wonder how much the politicians collect from their winnings, I mean campaign contributions from CenterPoint.

Is history repeating itself?

“The Demon of Unrest” by Erik Larson delves into the events leading up to the attack on Fort Sumter in Charleston Harbor. It’s a fascinating look at how two very separate ideologies put the country at odds with each other leading to what would become the American Civil War.

It was during this time that Abraham Lincoln would become the 16th president and was tasked with figuring out a way to keep both sides happy and keep the south from seceding from the Union.

How precarious was his position? Lincoln refused to go to Washington until the final vote was certified by both houses of congress. Complicating matters even more was that John C. Breckinridge, the current vice president was responsible for over-seeing the certification. Breckinridge, a slave owner from Kentucky lost to Lincoln in the 1860 election causing many to fear the country would not be able transition to the new administration and be thrown into chaos.

The election was officially certified, and Lincoln eventually made his way to Washington, D.C. albeit undercover as numerous death threats were made. There Lincoln struggled to understand what was really taking place in the south and was forced to face the war where an estimated 650,000 – 1,000,000 died was inevitable.

While “The Demon of Unrest” focused on the two very different principles between the north and south in the mid-1800’s, it’s hard not think of today’s America. While not geographically divided, America seems to appear to be moving toward going into two distinct camps; the far-left and the far-right, splitting the country into two very separate alliances.

One only has to look back at the events of Jan. 6, 2021 when the United States Capitol Building came under attack and was stormed by an angry mob who were upset by the election results and tried to stop certifying the results of the presidential election of 2020. Similar to Lincoln and northerners not understanding the mentality of people from the south and their believe in slavery as an honest and noble way of life, democrats have a hard time understanding the appeal of people like Donald Trump and Marjorie Taylor Greene.

The Civil War did not happen overnight. It took decades of distrust from both sides to reach the point where confederate rebels attacked Fort Sumter, looking to be free to live in a country that shared their values and beliefs. Are we at that point? That will be for historians to decide, but in the meantime, there are valuable lessons to be learned from what took place in the past, and what is taking place now.

It was Karl Marx who said, “history repeats itself”, but perhaps a more appropriate quote would be from George Santayana who poignantly said, “those who cannot remember the past are condemned to repeat it”.

Shut up and dribble

It isn’t easy being a Republican these days. First it was the crazy liberals on the left, followed by the biased media that were the problem. Now there is another opponent taking aim at the GOP and it’s coming from an unlikely source; big business.

It all started in Georgia (where the devil looks for souls to steal) when the state Legislature decided that they needed to tackle voter fraud (and free water/pizza) at the polls. Atlanta, home to Delta Airlines and Coca Cola took notice and issued statements opposing the legislation.

Ed Bastian, Delta chief executive officer wrote an internal memo saying “I need to make it crystal clear that the final bill is unacceptable and does not match Delta’s values”.  Not to be outdone, Coca Cola also joined with James Quincey, Coca-Cola’s chief executive saying “I want to be crystal clear the Coca-Cola Co. does not support this legislation, as it makes it harder for people to vote, not easier.” (Are we clear? Crystal clear.)

The response from the leaders of the Republican party was swift. Senate Minority Leader Mitch McConnell said “corporations will invite serious consequences if they become a vehicle for far-left mobs to hijack our country from outside the constitutional order. Businesses must not use economic blackmail to spread disinformation and push bad ideas that citizens reject at the ballot box.”

What stands out is to me is the word “disinformation”. I am reminded of a line from Jesus Christ Super Star where Pontius Pilate asks Jesus “we both have truths, are mine the same as yours?”. I guess McConnell forgot about the “Big Lie” which resulted in attacks on the Capitol in January, or maybe he still believes it.

I also have to think this really stings for many Republicans after passing the “Trump Tax Act” in 2017 cutting the corporate tax rate from 35% to 21% (et tu Brutus?).

McConnell is walking a very small tight rope these days trying to balance between the right and the money. Do you risk shutting off campaign contributions (some being very large) by telling corporations to mind their own business? Let’s not forget it was Mitt Romney who quipped “corporations are people my friends” after the Supreme Court ruled in favor of Citizens United allowing unlimited corporate and union spending on political issues back in 2010.

It also leaves many Republicans in the lurch on deciding if they need to boycott Delta, Coca Cola, AT&T, American Express, Merck, Major League Baseball, Aflac, Dell and Amazon. Even Houston Texans owner Janice McNair has joined in to oppose laws that are designed to restrict voting rights (but nobody is really interested in seeing them play anyways so is that really a big deal?).

Elected officials are free to pass laws they feel are in the best interest of their constituents, but people and big business are also free to speak their mind when they disagree. It seems many people still wants us ‘to shut-up and dribble’ when it comes to public discourse.

All about the Benjamins

There seems to be a change in people’s attitudes toward the great racial divide. Mississippi has voted to remove the Confederate symbol from its state flag. The NFL has decided that taking a knee to express one’s support for Black Lives Matter is now OK (although they still have yet to mention Colin Kaepernick) and there is no room for any form of racism in the league (except of course when it comes to cheering on the Redskins). Even Aunt Jemima is getting a make-over (whatever that means).

Yes, it appears people are finally finding the moral courage to stand up, taking action and saying change is needed, but what is really behind the states, sports leagues and companies change of heart. Could there be another motive behind this new way of thinking.

It was back in 1955 (when America was great) that the Montgomery Bus Boycott, a civil rights campaign took place. African Americans refused to ride city buses in Montgomery, Alabama, to protest segregated seating which took place.

A group of black women working for civil rights, began circulating flyers calling for a boycott of the bus system the day Rosa Parks, who refused to give up a seat for a white bus rider, would be tried in municipal court.

At the time, African Americans represented nearly 75% of Montgomery’s bus ridership. At the beginning, the city resisted complying with the protester’s demands. To ensure the boycott could be sustained, black leaders organized carpools and the city’s African American taxi drivers charged only 10 cents—the same price as bus fare—for African American riders.

Many black residents chose simply to walk to work or other destinations. Black leaders organized regular mass meetings to keep African American residents mobilized around the boycott.

The boycott proved extremely effective with enough riders lost to the city transit system to cause serious economic distress. Many other factors also played a role in lifting segregated seating regulations. Legal skirmishes were fought with the case making its way to the United States Supreme Court who ruled segregation on public buses and transportation was against the law.

The Montgomery Bus Boycott was not the only act of “civil disobedience.” The A.F.L. All-Star game was moved from New Orleans to Houston in 1965 after black players were left stranded at the airport for hours when they arrived in town. Once in the city African American players were refused cab service and in some cases those who were given rides were dropped off miles from their destinations. Other players were refused admittance to nightspots and restaurants, with many subjected to verbal abuse and a hostile atmosphere on Bourbon Street in the French Quarter.

New Orleans had been pitching an attempt to attract a professional football franchise whether in the A.F.L. or the N.F.L. for years. It took an additional two years after fumbling the A.F.L. All-Star Game for the city to bring enough change for them to get a NFL franchise.

Economic boycotts are nothing new. Countries have applied those tactics for years against each other with various degrees of success. America was founded, in part, by boycotting British goods under the umbrella of “No taxation without representation”.

So it’s no surprise companies, sports leagues and states are now embracing equal rights and Black Lives Matter. They can sense a movement and with that comes economic opportunity or ruin. When it comes to enacting change, the all-mighty dollar can be more of a powerful weapon than simply wanting to do the right thing.

Law and disorder

It’s been a while since I posted here, but there is a lot going on in the world today. Between the COVID-19 pandemic, racial unrest and police tactics, the calendar feels like it should be 1967, not 2020.

It would be hard to know what to make of current events under normal circumstances, but these are not normal times. Take for example the executive order signed by Texas Governor Greg that closed all nonessential businesses including barber shops and hair salons.

The order was pretty clear there would be consequences for those not complying with the order…

WHEREAS, under Section 418. 173, failure to comply with any executive order issued during the COVID-19 disaster is an offense punishable by a fine not to exceed $1,000, confinement in jail for a term not to exceed 180 days, or both fine and confinement.

A Dallas hair salon owner who had enough decided to take the law into her own hands and defied state and local orders for nonessential businesses to remain closed when she reopened Salon À La Mode. She tore up a cease-and-desist letter sent to her by local officials and was placed in jail (per Section 418.173).

The governor’s reaction? He tiptoed backward and eliminated confinement as a punishment for violating the executive orders and doing so handed the owner a get out of jail free card.

“Throwing Texans in jail who have had their businesses shut down through no fault of their own is nonsensical,” the governor said in a statement, “and I will not allow it to happen.”

Get that? She violated his executive order and he ended up saying that that his order was nonsensical (make sense?). Senator Ted Cruz was one of the first persons to visit the establish after it reopened (legally this time) and be coiffured and celebrate the violation of the executive order. One wonders if Cruz would have been that brave had the owner (who was white) been black or Latino.

Lt. Governor Dan Patrick, who apparently was in such a desperate need of a trim said that he and other grandparents would be willing to risk their health and even lives in order for the United States to “get back to work” amid the coronavirus pandemic.

Yes, these are strange times. I am glad I don’t have to make the decisions our leaders are faced with, but in today’s hyperbole world of political gesturing, it would be nice for people to try to use a little common sense, but sadly that commodity is much like the toilet paper was at the start of all this.

Presumed innocent…unless

Stop and Frisk has been in the news lately.

A stop-and-frisk refers to a brief non-intrusive police stop of a suspect. The Fourth Amendment requires that before stopping the suspect, the police must have a reasonable suspicion that a crime has been, is being, or is about to be committed by the suspect.

The obvious question is what is a reasonable suspicion. Former New York City Mayor, presidential candidate and billionaire Michael Bloomberg has come under fire lately due to the New York City Police Department practice of temporarily detaining, questioning, and at times searching civilians and suspects on the street for weapons and other contraband.

Bloomberg has since denounced the practice, but questions remain as to his motivation other than now he is running for president.

While reading up on this story, it made me wonder about the Show Me Your Papers Bill, formally known as Texas Senate Bill 4 which mandates local jails comply with voluntary U.S. Immigration and Customs Enforcement (ICE) detainer requests. The bill which was signed into law in 2017 also allows citizens to initiate investigations of alleged sanctuary cities and counties merely because the locality “endorses” a policy of non-cooperation with ICE.

The Fifth Circuit Court of Appeals ruled most of the law, except for a portion punishing officials who “endorse” sanctuary city policies, could go into effect while the case was pending in March 2018.

The lines can get blurred very quickly with both, stop and frisk, and show my your papers. The presumption of innocence comes into play when law enforcement does not need to obtain a warrant to search someone who is “suspected” of committing a crime.

I know that probable cause also comes into play (which is also protected by the Fourth Amendment), but again, while one person might feel there reasonable suspicion, another would disagree.

Many would argue that race is a major factor in both these situations and who is to say they are wrong. Much of the stop and frisk activity took place in poor neighborhoods mostly populated by minorities. My guess is the folks living on Park Avenue were not worried about being stopped.

Is he really running?

Michael Bloomberg has filed to be a presidential candidate, but does that mean he wants to be in the Oval Office?

CNBC is reporting that Bloomberg has purchased a whopping $57 million on TV ads, outspending almost every other Democratic candidate on TV and digital ads since he entered the race just over a week ago (billionaire Tom Steyer, has spent a little over $60 million since July).

Advertising Analytics, a data company who tracks spending, reports Bloomberg has paid over $6 million on national TV spots, plus $3 million in local ads focused on the New York and Los Angeles markets, and over $4 million on commercials airing in Texas.

That being said, Bloomberg is not participating in the Iowa caucuses and is not on the ballot in some of the other early states (New Hampshire, South Carolina and Nevada).

So what gives?

There has been speculation that Bloomberg is not interested in being president, but wants to ensure Trump is a one-term president and is running ads that are critical of his term in office. So why file and be a candidate?

Three words…Lowest Unit Rate.

By law, federal candidates are entitled to the lowest rates in the “class” of time they purchase (this only applies in political protection periods) thanks to Communications Act of 1934. The math can get a little complicated, but the bottom line is that candidates running for federal office are entitled to buy advertising at lower rates. By filing as a candidate, Bloomberg has access to purchase advertising at these rates which extends his buying power.

This also puts pressure on the Republican Party to keep up with the spending taking place. Advertising Analytics tweeted this graph Dec. 2, 2019 showing a wide disparity in spending.

There is still a long way to go, but it will be interesting to see how much of a candidate Bloomberg will be.

The real meaning of impeachment

The word impeachment has been in the news a lot, but it seems many Americans don’t really understand what that means (which is not surprising when you realize only 26% of Americans can name all three branches of the government (see “Could you pass this test”)

Impeachment is the process by which a legislative body levels charges against a government official. Impeachment does not in itself remove the official from office; it is the equivalent to an indictment in criminal law, and thus is only the statement of charges against the official.

In the relatively young history of the U.S. (243 years), only two presidents have been impeached. Andrew Johnson in 1868 and Bill Clinton in 1998 (Nixon resigned in part to avoid being impeached). Both Johnson and Clinton were acquitted and finished their term in office.

Impeachment by its very nature can be a very politicized event and that seems even more evident in today’s hyper-partisan world. Democrats want to “Dump Trump” while Republicans counter with “You just don’t like that he won”.

So where does that leave us? There really is no road map on how any of this works. For instance, there is a debate on whether or not congress must vote on a resolution to open inquires. No resolution has been voted on and it’s not clear that one would pass at this time (although it does appear the tide is shifting). Others argue having the House Judiciary Committee already engaged in an impeachment investigation by-passes the need for a resolution to open inquires.

Let’s just say for the moment, the House votes on the articles of impeachment with one of the articles passing, the president is officially impeached (the equivalent of being indicted, but not found guilty). The matter than goes to the Senate, were the procedures are even murkier.

You would think something this important would be spelled out in great detail, but you would be wrong; there are no set rules. The Senate could pass a resolution (there’s that word again) to lay out how the trail would proceed making it up as they go along, but there is no legal mechanism in place if the majority leader were to refuse to convene a trail (ala Senator Mitch McConnell refusing to permit a Supreme Court confirmation hearing and vote on Obama’s nominee, Judge Merrick Garland).

So how does this get resolved? There is one solution; let the American people decide in the 2020 presidential election. Then we can argue about the Election College and stop talking about impeachment.

Could you pass this test?

While the immigration debate continues, an interesting study was conducted Woodrow Wilson National Fellowship Foundation. It found only 1 in 3 Americans would pass the citizenship test which is administered to people interested in becoming a naturalized U.S. citizen.

National polling found only 26 percent of Americans can name all three branches of the government (down from 38 percent in 2011). If you think that’s bad, 33 percent of Americans surveyed were unable to name even one branch of government.

Another poll performed by Lincoln Park Strategies found…

  • Seventy-two percent of respondents either incorrectly identified or were unsure of which states were part of the 13 original states
  • Only 24 percent could correctly identify one thing Benjamin Franklin was famous for, with 37 percent believing he invented the light bulb
  • Only 24 percent knew the correct answer as to why the colonists fought the British
  • Twelve percent incorrectly thought WWII General Dwight Eisenhower led troops in the Civil War; 6 percent thought he was a Vietnam War general

Not surprisingly, the poll found significant gaps depending on age. Those 65 years and older scored the best, with 74 percent answering at least six in 10 questions correctly. For those under the age of 45, only 19 percent passed with the exam, with 81 percent scoring a 59 percent or lower.

Curious on how you would do? You can see the 100 possible questions with the answers by visiting USCIS.gov. The test is given orally with USCIS Officers asking the applicant 10 of the 100 civics questions listed. You’ll need to get six out of ten to pass.

Good luck!