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Political deregulation of Texan grid to blame for near total collapse & bills of $15,000+

By Andy Rowell - Oil Change International, February 25, 2021

If shivering with cold dark for days in sub-zero temperatures was not enough for many Texans, those lucky enough to still have electricity during the recent freezing weather have been hit with exorbitant electricity bills.

In some cases unlucky customers have been charged a whopping USD $15,000 for one month’s power, or put another way over 70 times the normal cost people pay for all their utilities.

One customer Susan Hosford of Denison told the AP that normally she pays around $2.50 for power per day, but got charged $1,346.17 for the first two weeks of February. “This whole thing has been a nightmare,” she said.

Another customer, Karen Knox, a teacher in Bedford, not only lost power but now owes $7,000 to Griddy, an electricity provider located in Houston. She told the Texas Tribune there was no way she could pay.

Such is the outcry that Governor Greg Abbott, a Republican who is heavily funded by Big Oil, had to hold an emergency meeting with legislators to discuss the outrageous bills.

Abbott and others are now promising relief for those hit by sky-high bills, although how people are compensated is yet to be worked out.

As the anger has grown, so too has the political fall-out and finger pointing and as to what has gone wrong and who is to blame.

The reason the grid failed is simple: political deregulation. Along with sixteen other states Texas had deregulated its power market. The market was deregulated in 2002, under the then Governor Rick Perry, who would later become President Donald Trump’s Secretary of Energy.

Perry established the Electric Reliability Council of Texas (known as ERCOT), with roughly 70 providers. And then the politicians cut Texas off from the rest of the country, the only state in the contiguous U.S. that was operating its own electric grid.

And because the Texas grid was then disconnected from the rest of the country, no reserves could be imported when the grid got into trouble.

“As someone who has spent the past two decades studying electricity deregulation, I know that extreme power bills in Texas result partly from the state’s market-driven approach to running the power grid,” wrote Seth Blumsack, Professor of Energy and Environmental Economics and International Affairs, at Penn State in the Conversation yesterday.

Blumsack continued: “the sky-high electric bills in Texas are partly due to a deregulated electricity system that allowed volatile wholesale costs to be passed directly to some consumers.”

Frontline Organizations Demand a Just Recovery After Millions are Left to Freeze in the Face of Another Climate Catastrophe in Texas & the Southeast

By Diana Lopez and Juan Parras - Climate Justice Alliance, February 18, 2021

As our neighbors burn furniture to stay warm amidst widespread power outages in below freezing temperatures, this arctic weather event, fueled by the climate crisis, has exposed the vulnerability of the Texas power grid and its failure to effectively serve its people. It is clear how much we need a just recovery: an all-encompassing, community-based, solutions oriented approach putting community needs and equity above profit in these times of climate chaos. We must prioritize a Just Transition to a modern, regenerative and renewable energy system, one that is clean and safe for us all.

The current reliance on the fossil fuel industry and the historic stranglehold its industry holds in Texas politics underlies the lack of comprehensive extreme weather planning, mitigation and preparedness. This has left the region, state and especially frontline communities, in a state of continuous crises. While the oil and gas industries have tried to blame what is happening on alternative energy models, the reality is they did not build resilient infrastructure that can adapt to increasingly extreme weather.

An outdated, overly fossil fuel reliant, heavily privatized electricity grid has failed, leaving 3 to 4 million households without power for days not only in Texas, but throughout the region that is the cradle of this industry. Far too many people have died and hundreds more have been hospitalized, as Indigenous, Black, Latinx, Asian and other frontline communities once again remain the hardest hit. Thousands more are also facing contaminated water and massive damages from broken pipes. The privatization of the Texas energy grid is the seed of this crisis, where the profits of fossil fuel industries have been prioritized over the needs of the people.

The climate crisis is risking lives and it is impacting all communities, those at the margins are the hardest hit. Individuals with disabilities that rely on medical respirators, families having to break quarantine to keep eachother safe, and all the while the cost of energy increases during a time where the economy is a long way from stabilizing.The true cost of ignoring climate change is sadly yet to come, as those affected by this most recent extreme weather in the region are seeing the aftermath of burst water pipes, non weatherized homes and outdated infrastructure ill-equipped to handle the reality of climate change.

While our communities work to recover from Covid-19, massive job loss and the current climate crises, now is the time for investments to move toward a Just Transition to rebuild clean water and energy infrastructure for our future. We can put millions of people to work by creating locally controlled clean energy jobs, building new stable systems of power without pollution, and energy without exploitation. This is the time to Build Back Fossil Free.

Water and energy are not commodities — they are basic human rights. We need emergency response right now to distribute solar power, clean water and basic emergency needs for vulnerable communities as well as long term changes toward a healthy and sustainable future. We recognize that other communities in neighboring states are also impacted by the devastating winter vortex, power outages and water shortages. We support their efforts to self organize and will act in coordination and solidarity with all of those on the frontlines of climate catastrophes.

As our communities continue to care for each other through local mutual aid networks long established to deal with crises like these, we call on local and state officials to immediately begin a just recovery by:

Organizers & Organizations, Foundations & Philanthropists

Impact of European policies on the Global South and possible alternatives

By staff - Recommons Europe, January 2021

The year 2020 was marked by two events that revealed, once again, the limits of the capitalist system. First, the Co- ViD-19 pandemic caused by the new coronavirus SARS-CoV-2, responsible for the deaths of several hundred thousand people and counting, highlighted the vulnerability of human societies in the absence of adequately funded public health services. It also served to highlight which activities are essential to the existence of human societies. Second, the pandemic precipitated the greatest economic crisis since the 1930s. By revealing the fragility of societies where exchanges are extremely rapid and production chains are internationalized, the pandemic also revealed the most irrational aspects of the economic system that governs and structures social relations in almost all parts of the world. Thus, capitalism appears to be incapable not only of providing for basic human needs but also of reproducing its own functioning. All governments that initially try to protect both the law of profit and their citizens’ lives inevitably find themselves tempted to defend the former against the latter.

The neoliberal structural adjustment policies which have been pursued for decades have played an important role in increasing inequality and, ultimately, in the way the epidemic has spread. Contrary to widespread belief, the epidemic does indeed differentiate between origins and social classes, affecting in particular those at the bottom of the social ladder. It has also particularly affected countries that, on the pretext of maintaining strict fiscal discipline, have given up – or have been prevented from – building an efficient and accessible health care system.

Read the Report (PDF).

Care Work Is Essential Work. It's Also Climate Work

Protesta Y Propuesta: Lessons from Just Transformation, Ecological Justice, and the Fight for Self-Determination in Puerto Rico

By Brooke Anderson and Jovanna García Soto - Grassroots International and Movement Generation, February 2020

“De la Protesta a la Propuesta” (“From protest to proposal”). That’s the slogan that watershed protectors used when they successfully stopped open pit mining in the heart of Puerto Rico’s mountains then brought those same lands under community control. For those of us looking to build just transformation in place, we have much to learn from Puerto Rico’s social movements which are at once both visionary and oppositional, centering sovereignty and self-governance.

Just transformation, or just transition, is the work “to transition whole communities toward thriving economies that provide dignified, productive, and ecologically sustainable livelihoods that are governed directly by workers and communities.”

In the U.S., the term just transition was originally used by the labor movement to demand that with the phaseout of polluting industries, workers would be retrained and adequately compensated rather than bear yet another cost from working in that industry. Environmental justice communities on the fenceline of these polluting industries then built common cause with workers for a just transition that would not put the environmental or economic burden on workers or communities. In the U.S., the term has since further evolved to capture systemic transformation of the whole economy. While U.S. frontline groups often use the term just transition, some Puerto Rican social movements use the term just transformation—especially as a way to capture the necessity of achieving decolonization and sovereignty as part of any transition. As such, we’ll be using just transformation in this report, as well as other concepts such as self-determination and ecological justice.

Read the report (Link).

They killed themselves with greed: How a strike stopped privatization in DC’s Metro

By Ray Valentine - Organizing Work, December 29, 2019

Ray Valentine describes how a scheme to cut labor costs in the DC-area transit system through privatization backfired when workers at the private subcontractor went on strike.

On October 24, 120 bus operators, mechanics, and other workers represented by the Amalgamated Transit Union Local 689 walked off the job at the Cinder Bed Road MetroBus garage in Lorton, Virginia, launching the first strike to hit the Washington, DC metro area’s mass transit system in more than 40 years. The strike was unplanned and small — small enough that it won’t show up in the federal government’s tally of work stoppages — and after more than two months, workers are still out with no settlement in sight. But even though the issues that provoked the dispute have not been resolved, the fight has led to major changes that have strengthened the position of workers throughout the transit system.

The buses out of Cinder Bed drive routes that are part of the Washington Metro system and the workers wear Metro uniforms, but the garage is operated by Transdev, a French multinational. The garage was outsourced as part of a long-term plan by Metro management to cut costs by contracting out as many services as possible in order to drive down labor costs. The strike began as a fairly straightforward economic conflict over wages and benefits, and the union’s ambitions going into it were modest. But on December 13, the union and Metro reached a deal that would halt further privatization and even bring some services that have already been outsourced back in-house. 

The result is a rare win for labor, but it’s not entirely clear how it happened, even to the people who won it.

Extractivism and Resistance in North Africa

By Hamza Hamouchene - Transnational Institute, October 2019

Extractivism as a mode of accumulation and appropriation in North Africa was structured through colonialism in the 19th century to respond to the demands of the metropolitan centres. This accumulation and appropriation pattern is based on commodification of nature and privatisation of natural resources, which resulted in serious environmental depredation. Accumulation by dispossession has reaffirmed the role of Northern African countries as exporters of nature and suppliers of natural resources – such as oil and gas- and primary commodities heavily dependent on water and land, such as agricultural commodities. This role entrenches North Africa’s subordinate insertion into the global capitalist economy, maintaining relations of imperialist domination and neo-colonial hierarchies.

The neo-colonial character of North African extractivism reflects the international division of labour and the international division of nature. It is revealed in largescale oil and gas extraction in Algeria and Tunisia; phosphate mining in Tunisia and Morocco; precious ore mining - silver, gold, and manganese - in Morocco; and water-intensive agribusiness farming paired with tourism in Morocco and Tunisia. This plays an important role in the ecological crisis in North Africa, which finds its clear expression in acute environmental degradation, land exhaustion and loss of soil fertility, water poverty, overexploitation of natural resources, pollution and disease, as well as effects of global warming such as desertification, recurrent heat waves, droughts and rising sea levels.

Concurrent with this dynamic of dispossession of land and resources, new forms of dependency and domination are created. The (re)-primarisation of the economy (the deepened reliance on the export of primary commodities) is often accompanied by a loss of food sovereignty as a rentier system reinforces food dependency by relying on food imports, as in the case of Algeria; and/or as land, water and other resources are increasingly mobilised in the service of export-led cash crop agribusiness, as in Tunisia and Morocco. Extractivism finds itself mired in serious tensions, which generates protests and resistance. This paper documents some of these tensions and struggles by analysing activist grassroots work, including the participation in alternative regional conferences and ‘International Solidarity Caravans’ where representative of grassroots organisations, social movements and peasant communities met and travelled together to sites of socio-environmental injustices, providing a space to strategise together and offer effective solidarity to their respective struggles.

The rural working poor and the unemployed in Northern Africa are the most impacted by the multidimensional crisis. Comprising small-scale farmers, near-landless rural workers, fisherfolks and the unemployed, the movements emerging in the five case studies presented here are resisting the looting of their subsoil resources, the despoliation of their lands, pervasive environmental destruction and the loss of livelihoods. The paper asks the following questions: should we see these protests, uprisings and movements as mainly environmental, or are these fundamentally anti-systemic – anti-capitalist, antiimperialist, decolonial and counter-hegemonic protests? Are these circumstantial episodes of resistance, or do they rather represent the latest development in the historical trajectory of class struggle against the latest capitalist offensive in North Africa? The paper presents an assessment of the nature of these movements which grapple with tensions and contradictions that face them.

Read the report (PDF).

Remaking Our Energy Future: Towards a Just Energy Transition (JET) in South Africa

By Richard Halsey, Neil Overy, Tina Schubert, Ebenaezer Appies, Liziwe McDaid and Kim Kruyshaar - Project 90 by 2030, September 19, 2019

A just transition (JT) is a highly complex topic, where the overall goal is to shift to systems that are better for people and the planet, and to do so in a fair and managed way that “leaves no one behind”. A JT is about justice in the context of fundamental changes within the economy and the society.

Both of these areas are extremely contested, consensus is hard to achieve, and people are generally resistant to change. A JT confronts “business as usual” and threatens powerful vested interests in certain economic sectors. In recent years, a vast amount of literature on the subject has been published, and in South Africa the conversation has picked up pace. The urgency of acting now is indisputable.

While a JT can apply to many sectors and industries, this publication focuses on energy. In addition to being a major contributor to climate change, environmental damage and impacts on human health, the energy sector (particularly Eskom), is facing significant challenges in South Africa. We fully acknowledge that energy is linked to other sectors such as transport, agriculture, water and land use, and that a just energy transition (JET) is a part of a wider JT. While the focus of this report is on one sector, we do so recognising that it is linked to other parts of a larger system in many ways.

Our approach was to look at what we can learn from international experience, to combine that with what has already been done in South Africa, and to make recommendations about how to move forward. This publication focuses on the shift from coal to renewable energy (RE), mainly for electricity generation. We are well aware that a movement away from fossil fuels (coal, oil and gas) is far more than just moving from coal to RE, but as discussed in Chapter 3, this particular transition is the obvious starting point in South Africa. The lessons and recommendations presented here can also be adapted to other fossil fuel sectors. While the focus of this study is on coal, a big picture perspective of the energy system is crucial. South Africa must adopt an integrated planning approach, for energy and other sectors.

Read the text (PDF).

(Working Paper #12) The Road Lest Travelled: Reclaiming Public Transport for Climate-Ready Mobility

By Sean Sweeney and John Treat - Trade Unions for Energy Democracy, May 2019

This working paper examines some of the key questions at the heart of climate-related debates on transport, and around passenger road transport in particular. It also looks at some of the more important issues surrounding public transport specifically, and the failure of neoliberal transport policy to improve and expand public transport in ways that fulfill its full social and environmental potential.

Part One: Mobility Rising: Transport, Energy and Emissions Trends

In Part One of this paper, we survey the current trends in energy, transportation and emissions. Although emissions continue to rise across the global economy, transport-related emissions are growing faster than those of other major sectors. Transport is now responsible for almost one-third of final energy demand and nearly two-thirds of oil demand. It is also responsible for nearly one-quarter of global carbon dioxide (CO2) emissions from the use of fuel. This means that controlling and reducing CO2 emissions from cars, trucks, and motorcycles must become a policy priority.

Part Two: Neoliberal Transport and Climate Policy at the Crossroads

In this part, we review the policy landscape, including how transport-related emissions from the transport sector are addressed in the Paris Climate Agreement—which is hardly at all. We show that neoliberal climate policy has failed to make any real progress in addressing transport-related emissions, while at the same time preventing public transport from realizing its potential, mainly due to the insistence on a “public-private partnership” model in a futile effort to “unlock” private investment.

Part Three: The Electric Car—Myths and Realities

We summarize the myths and realities surrounding electric cars, and highlight some of the major issues associated with their possible mass deployment. We show that common assumptions about the role of private EVs in the future of sustainable mobility are not at all consistent with what is actually happening, what is likely to happen in the future, or with what is even possible or desirable from a trade union perspective.

Part Four: Taming the Transport Network Companies (TNCs): From Uberization to Enhanced Public Mobility for All

In Part Four, we look at the rise of TNCs and other recent developments and trends in urban transport. This has triggered a global debate on “new mobility services.” In this part of the paper we argue that TNCs currently undercut public transport systems and contribute to traffic congestion and often increase emissions. But the same “platform technologies” that gave us Uber and similar companies can become integrated into public transport systems in ways that complement traditional public transport modes and reduce dependence on private vehicles.

Part Five: Shifting Gears: A Trade Union Agenda for Low-Carbon Public Mobility

Finally, we summarize some of the climate-related arguments that unions can use in their fight to defend, expand and improve public transport. We believe these arguments are consistent with the values and priorities of many transport unions and progressive trade unionism in general.

The authors hope this paper will encourage unions representing workers in all sectors to deepen their discussions around the future of transport—to join the conversation about what public transport can and should look like in future, and what needs to happen in order to bring that vision to reality.

Read the report (PDF).

Puerto Rico’s Power Union Denounces Governor’s Decision to “Sell the Assets” of the Public Power Utility (PREPA)

By Angel Figueroa Jaramillo - Trade Unions for Energy Democracy, January 23, 2018

UTIER DENOUNCES GOVERNOR’S ANNOUNCEMENT OF THE PRIVATIZATION OF THE PUBLIC POWER UTILITY (AEE, OR PREPA)*

San Juan, Puerto Rico, January 23rd, 2018

The Union of Workers of the Electric and Irrigation Industry (UTIER) denounces Governor Ricardo Rossellá’s announcement to privatize the Puerto Rico Electric Power Authority (PREPA). The announcement demonstrates the insensitivity of this government and leaves clear that the welfare of the people is not among the interests of the current Governor.

UTIER has been consistent in denouncing the privatization plans of various government administrations and also the recent intentional slowness in the process of restoring the electrical system.

The Governor is taking advantage of the pain of thousands of people who are currently without electric power. Given the insensitivity of Governor Ricardo Rosellá of announcing the privatization of PREPA in the midst of the suffering of almost half a million Puerto Ricans who still do not have electricity, UTIER once again raises its voice in favor of the people. We have tried through our brigades to restore electric power as soon as possible, despite all the obstacles that the government, the Engineers brigade, the Board of Fiscal Control, and the upper management of PREPA have erected to try to prevent us achieving that goal.

For decades we have warned how various administrations have undermined workers and intentionally damaged the infrastructure of PREPA. This was intended to provoke the people’s discontent with the service in order to privatize our first industry, “the jewel in the crown”, to strip us—the people—of what is ours. “Because PREPA is a public good that belongs to the people and not to the politicians,” said the president of the UTIER, Angel Figueroa Jaramillo.

Figueroa Jaramillo explained how, since the 1970s, governments of the two main parties have tried to privatize PREPA. In each of these attempts, UTIER has reacted immediately, warning the people what this would mean for the country.

“We asked, how come it was possible that, facing so much devastation left by the hurricanes, that we would prioritize hiring a company such as Whitefish, which did not have the staff or experience to handle an emergency like the one we had gone through? Then we met the endless irregularities in the awarding of the contract that was signed with Whitefish and the powerful political links it has with the current US administration. Everything we said was proven to be correct and has been so in every complaint we have made over decades”, said Figueroa Jaramillo.

The President of UTIER insisted, “The position of UTIER is that electricity is a human right and not a commodity. That is what our people have realized after the ravages of hurricanes Irma and Maria, after having run out of electricity and suffering so many hardships and the loss of family members, either because they have died or had to leave the country. That is why we strongly oppose privatization in any of its expressions, whether through the transfer of assets or the transfer of management to private companies. We ask the people the following question so that they think clearly about it: If PREPA was not profitable and able to generate profits, would there be a company that wanted to acquire it?”

The president of the UTIER urged people to also remember the declarations of the Board of Fiscal Control (JCF) a year ago in which it presented the privatization of PREPA as one of its goals. “We cannot leave the heritage that belongs to us–-the people—in private hands. And one of them is PREPA. Because if at some point we face another atmospheric phenomenon such as the ones to which we are exposed every year during hurricane season, we already know how the private generators AES and Ecoelectrica will react: turning off their machinery in order not to lose their investment. That’s what they did on this occasion. They are not worried about the suffering of the people. That situation cannot be repeated and if PREPA is privatized, that is what’s in store for us. Furthermore, we must not be deceived: privatization increases the electric bill and makes us more vulnerable as the people. Let’s not allow the main industry for the development of our country to be stolen from us. Let’s not wait for it to happen”, added Figueroa Jaramillo.

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