The Price of Loyalty the Bush Files


The Bush Files : Economy , From The Book

Page 147 - Angry CEO Protests Bush Energy Orders (2 pages)

Shortly after taking office, the Bush administration grudgingly agreed to extend a Clinton-era order that required energy companies to sell gas to California's cash-strapped utilities. In the middle of its energy crisis, a cut-off of gas supplies could have crippled the nation's largest state. Energy companies, however, including Goldman Sachs subsidiary J. Aron, feared they would never be repaid for the gas they were forced to provide. Goldman Sachs CEO Hank Paulson sent an angry note protesting the orders to Energy Secretary Spencer Abraham, copied to Paul O'Neill. "Paul," wrote the CEO, "This is hardly the new administration's finest hour!" The orders were allowed to expire after the California state legislature approved a bond issue to support the state's utilities.

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© 2004 Ron Suskind