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Case 20-33918 Document 374 Filed in TXSB on 10/08/20 Page 1 of 2 Case 20-33918 Document 374 Filed in TXSB on 10/08/20 Page 1 of 2 Case 20-33918 Document 374 Filed in TXSB on 10/08/20 Page 2 of 2 C M Y K Nxxx,2020-10-08,B,003,Bs-BW,E1 THE NEW YORK TIMES BUSINESS THURSDAY, OCTOBER 8, 2020 N B3 ENERGY | MEDIA | FINANCE Citing Safety, Agencies Concede Poor Planning in California Blackouts By IVAN PENN Outlet Pulls A report by California energy offi- cials on Tuesday placed blame for rolling blackouts that left millions White House without power in August on the impact of climate change and out- dated policies and practices that Reporter failed to adequately take into ac- By KATIE ROBERTSON count hotter weather. In the 121-page preliminary re- BuzzFeed News has pulled a polit- port to Gov. Gavin Newsom, the ical correspondent from the White state’s three central energy orga- House press pool, citing concerns nizations attributed the blackouts that the area has become a co- — the first in two decades — to a ronavirus hot zone after President heat wave that increased demand Trump, many of his top aides — in- for electricity while reducing the cluding the press secretary supply of power. Poor planning Kayleigh McEnany — and several compounded those problems, ac- journalists have tested positive cording to the report, which was for the virus. produced by the California Ener- A BuzzFeed News spokesman, gy Commission, the California Matt Mittenthal, confirmed that Public Utilities Commission and the company on Tuesday had the California Independent Sys- withdrawn the correspondent, tem Operator. Kadia Goba, from her Wednesday “The combination of these fac- shift out of concern for her safety. tors was an extraordinary event,” The spokesman added that Buzz- the agencies said in the report. “But it is our responsibility and in- tent to plan for such events, which Skipping a press-pool are becoming increasingly com- mon in a world rapidly being im- shift in a coronavirus pacted by climate change.” As triple-digit temperatures hot spot. blanketed the West on Aug. 14 and 15, the California I.S.O., which Feed News was awaiting further manages the power grid for 80 guidance from the White House percent of the state, ordered utili- Correspondents’ Association. ties like Pacific Gas & Electric and ROBYN BECK/AGENCE FRANCE-PRESSE — GETTY IMAGES Reporters rotate into the White Southern California Edison to Los Angeles during a heat wave in August, when grid managers ordered rolling blackouts for the first time in two decades to reduce demand for electricity. House press pool, a group of jour- black out as many as 3.3 million nalists that represents the wider customers to reduce demand for corps to share coverage of the electricity. and most innovative state,” he dams under its control. blackouts. Neil Chatterjee, the said. president and the day’s events. It was the first time the state wrote in a letter to the grid man- The report also pointed to prob- commission’s chairman, said in a Concern about a lack of power The pool includes representatives had resorted to rolling blackouts ager and the two state agencies. lems in the energy trading mar- recent interview that it appeared plants that can produce electricity of wire news services, newspa- since the 2000-1 energy crisis. The governor, a Democrat, or- ket. For example, officials failed to that California had failed to prop- throughout the day like natural pers and news sites, as well as The decision angered Mr. New- dered an analysis of the events properly forecast demand a day erly plan its transition away from gas plants led the state to extend television and radio outlets. som, who said he had not been in- that resulted in blackouts during a ahead of the blackouts and did not fossil fuels, but added that he operations of old plants that were “Anyone that knows me under- formed about the need for black- pandemic. He also moved to re- buy enough power. In addition, would wait for a final report before expected to shut down this year. stands I’d rather be at the White outs until shortly before they be- duce demand and increase power trading in the state’s electricity drawing final conclusions. The state and its utilities are also House working today,” Ms. Goba gan on Aug. 14. “These blackouts, supplies by asking consumers and market made it difficult to identify “What looks to have taken place seeking to install more batteries said, “but at the same time, there which occurred without prior businesses to use less electricity “tight supply conditions,” the re- is California retired some gas gen- that can store power when there is are obvious concerns about work- warning or enough time for prepa- and ordered the California State port said. eration, were counting on batter- too much supply and quickly pro- ing indoors during an outbreak.” ration, are unacceptable and un- Water Resources Control Board to The Federal Energy Regulatory ies and didn’t quite have those re- vide it to the grid when demand She added, “I don’t want to be befitting of the nation’s largest produce more electricity from Commission is also reviewing the sources in place,” Mr. Chatterjee surges. knocked out for the rest of the election because I’m sick.” After BuzzFeed News notified other news organizations on Tues- day that its reporter would not work her shift, an email circulated Investors Warm to Idea of ‘Blue Wave’ among members of the press pool asking for someone to fill in. FROM FIRST BUSINESS PAGE suggesting the U.S. equity mar- a contentious period after the Nov. “We are in uncharted territory,” ers in the swing states of Florida kets have been pricing in a higher 3 election that extends political Todd J. Gillman, the Washington and Pennsylvania, Mr. Biden had probability of a Biden Presiden- uncertainty into the foreseeable bureau chief of The Dallas Morn- widened his lead over the presi- cy,” the JPMorgan analysts wrote future. In recent weeks, the possi- ing News, who coordinates the dent to 11 percentage points and 13 in a research note last week. bility of a contested election — or print pool, wrote in the email, percentage points. In the government bond mar- even an outright constitutional which was reviewed by The New Also on Wednesday, the S&P ket, yields on long-term Treasury crisis — was being priced into York Times. 500 closed up 1.7 percent. The in- bonds — which have been lan- markets as Mr. Trump repeatedly “No one wants anyone to take dex has risen 2.5 percent since the guishing at some of the lowest lev- refused to commit to a peaceful unwarranted risk,” he added. first debate on Sept. 29. The mar- els on record — have moved transfer of power. “Nor do we want the pool system ket moves aren’t huge, but ana- sharply higher over the last week. The statements pushed jittery to collapse.” lysts say they are meaningful re- That suggests some are pricing a investors to cut back on their Politico sent a reporter, flections of investors’ thinking at combination of faster economic stock market risk over the last Meridith McGraw, to cover the this point. growth, higher inflation and rising month. Starting in early Septem- White House in place of the Buzz- The outcome of the first debate government deficits over the fu- ber, the S&P fell for four consecu- Feed correspondent. increased “the odds of first Joe Bi- tive weeks, coming close to drop- “Witnessing events unfolding den becoming president, but also ping 10 percent. The likelier Mr. at the White House is valuable for in line with the Democrats also S&P 500 has risen Biden is to notch a conclusive vic- us, the press corps, Americans taking the Senate,” said Shahab tory, the greater the amount of and the world at such a critical Jalinoos, global head of macro 2.5 percent since the risk of political uncertainty that moment in our nation’s history,” strategy with Credit Suisse in first debate. investors can take off the table. Politico said in a statement. “We New York. “That’s obviously been “The cleaner the win, then the a tailwind for markets since.” less likely that there is a disputed will continue to follow W.H.C.A. STEVE JENNINGS/GETTY IMAGES Unified Democratic control in ture. (Treasury bond prices tend election,” said Mr. Jalinoos, of guidelines on safely reporting Laurene Powell Jobs is the investor who founded Emerson Collective. from the White House as the situa- Washington is not usually high on to fall during periods of fast eco- Credit Suisse. “Once you down- tion continues to develop.” Wall Street’s wish list, as it is asso- nomic growth, pushing yields — grade that risk, it tends to be a In addition to the president and ciated with increased regulation which move in the opposite direc- market positive.” Ms. McEnany, the coronavirus and taxes. And some investors tion — higher.) In recent days, Wall Street ana- outbreak has ensnared nearly a California Sunday Loses continue to have mixed feelings “The odds of a Biden victory lysts have written that the likely dozen members of the Trump ad- about a potential Biden agenda, continue to rise, as do the chances large flood of federal stimulus that ministration. Two other members which calls for higher taxes on of a blue sweep, and if the recent would follow a “blue wave” could of the White House press team, in- Backer and Shuts Down corporations and the wealthy. bid for risk assets is any guide, cushion the blow of higher taxes cluding a relative of Ms.
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