At a \r\npress conference held at outside Flagstaff City Hall on 4\/5\/2002, \r\nBlack Mesa Trust (BMT) \r\nresponded to a recent resolution by Hopi Tribal Council \r\nto work with Houston based Reliant Energy on a joint coal powered \r\nenergy plant to be built on Black Mesa. \r\n<\/p>
\r\nVernon Masayesva, BMT Executive Director and former Hopi Tribal \r\nChairman, alleged that the Hopi Tribal Council passed the resolution\r\nwithout full knowledge of Hopi tribe members and that the council may\r\nhave \"have violated procurement procedures by agreeing to work with \r\none company.\" The resolution was passed after the Council suspended its\r\nown procedural rules and considered the matter during a session scheduled\r\nto be devoted to hearing reports from various Hopi task teams. \r\n<\/p>
\r\nStating that there are many other energy companies who would want to \r\nsubmit a proposal to develop energy resources on Hopi land, especially\r\nthose utilizing renewable energy sources, Masayesva wondered, \"Why \r\nReliant... was selected has not been explained to the \r\npublic.\"\r\n<\/p>
\r\n\"I am beginning to believe \r\nthat the Bush-Cheney national energy policy is focused on Indian lands \r\nand that they are going to continue siting hazardous materials dumps \r\nand pollution-generating coal-fired power plants on our homelands,\"\r\nstated BMT President Leonard Selestewa. \r\n<\/p>
\r\nReliant Company Donations and Information<\/b>\r\n<\/p>
\r\nAccording to the website \r\nopensecrets.org, Reliant Energy \r\ndonated $100,000 to the Bush-Cheney\r\n2001 Presidential Inauguration. In addition, Reliant rated\r\nthe 12th top Electric Utilities contributor during the 2002 election cycle with donations totalling $213,581\r\nof which 72% was given to the Republican Party. \r\n<\/p>
\r\nAlso found at the opensecret's site\r\nis an article on \r\nthe campaign behind the Bush Energy Plan. According to that article\r\nReliant donated $584,606 to The American Taxpayers Alliance, a group\r\nheaded by former Bush and Dole campaign advisor Scott Reed.\r\n<\/p>
\r\nAs mentioned in a previous article on Arizona IMC's website, \r\nThomas Glanville, president of Reliant Energy Ventures for Reliant Resources, \r\nInc. and vice president of technology and new ventures for its parent \r\ncompany, Reliant Energy, Incorporated, had previously worked for \r\nEnron\r\nbetween 1991 and 1998. According to the \r\nReliant \r\nwebsite.\r\n<\/p>
\r\n(According to the \r\nHouston Chronicle,\r\nduring this timeframe Enron acquired their first pipeline presence\r\nin South America and began construction of the controversial\r\n\r\nDabhol power plant in India).\r\n<\/p>
\r\nIn addition, a Reliant press \r\nrelease issued on 3\/4\/2002 announces the promotion of William S.\r\nWaller Jr. to Treasurer of Reliant Resources. Previously, Mr. Waller had\r\n\"worked at the International Finance Corporation, which is the private \r\nsector arm of the World Bank, in Washington D.C., with a focus on \r\nfinancing the construction of power plants in developing countries.\"\r\n<\/p>
\r\n(Information on the IMF and World Bank can be found at ZNet's\r\nA \r\nQ&A on the WTO, IMF, World Bank, and Activism).\r\n<\/p>
\r\nGiven these connections to the World Bank, Enron, and the Bush\/Cheney\r\nEnergy Commission and the history of Black Mesa, it is no wonder that \r\nMr. Masayesva stated at the conference, \"What we have here is the making of an\r\nenergy-industrial-tribal complex, just like the military-industrial\r\ncomplex of the 1950s.\"\r\n<\/p>
\r\n<\/p>
\r\n\"Off Balance Sheet Reporting\"<\/b>\r\n<\/p>
\r\nFurther investigations of past Reliant business practices include alleged\r\ndouble selling of power in California, profiting from price spikes during\r\na trial period of energy deregulation in Texas, and SEC inquiries into\r\npossible earnings reporting inconsistencies. In addition, due to the\r\ncurrent shakiness of energy company shares due to the Enron fallout, the\r\nfuture of Reliant may belong in the hands of European companies. \r\nInformation detailing these issues are below:\r\n<\/p>
\r\n<\/p>
\r\nAccording to Lockyer, \"These companies fattened their wallets at the \r\nexpense of the safety and reliability of the transmission system \r\nserving Californians.\"\r\n<\/p>
\r\nThe lawsuits, which seek more than $150 million in penalties, \r\nrestitution and return profits, allege that the four firms double-sold \r\npower beginning in 1998 through the state's power crisis last year. In\r\naddition, Lockyer alleges that the firms racked up millions of dollars \r\nin profits for emergency generating capacity that was never provided. \r\n<\/p>
\r\nAccording to that article, \"The action comes as the attorney general is \r\nalso targeting a number of power generators for alleged price gouging \r\nduring the state's electricity crisis last year. That power crisis \r\npushed PG&E Corp.'s (California's biggest utility) into bankruptcy \r\nprotection and caused rolling blackouts for tens of thousands of \r\nresidents.\r\n<\/p><\/li>\r\n
\r\n<\/p>
\r\n<\/p>
\r\nThe Securities and Exchance Commission (SEC) is informally inquiring \r\ninto Reliant's restatement of second and third quarter earnings. According \r\nto the article:\r\n<\/p>
\r\nOn Feb. 5 , the company said the restatement would increase earnings \r\nfor the second and third quarters by $100 million to $130 million, as \r\nit recognized profits in 2001 that it had expected to record in 2002 \r\nand 2003. The restatment stemmed from a reassessment of how the company \r\naccounted for derivative instruments.\r\n<\/p><\/li>\r\n
\r\n<\/p>