Feb 172013
 
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Scott Walker's cuts call for selling off power plants in no-bid deals.

by Rick Ungar for Forbes Magazine

Everyone enjoys a good conspiracy theory.

Of course, we rarely get to find out whether the theory has any truth or is nothing more than a fanciful narrative created by someone with too much time on their hands.<!–more–>

But now, there is a conspiracy theory coming out of the fiasco in Wisconsin that may tell us everything we ever needed to know about Governor Scott Walker – and the cool part is that it comes with a verifiable ending.

Check out Section 44.16.896 of Wisconsin Senate Bill 11, which reads–

(1) Notwithstanding ss. 13.48 (14) (am) and 16.705 (1), the department may sell any state−owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state. Notwithstanding ss. 196.49 and 196.80, no approval or certification of the public service commission is necessary for a public utility to purchase, or contract for the operation of, such a plant, and any such purchase is considered to be in the public interest and to comply with the criteria for certification of a project under s. 196.49 (3) (b).

What this says is that the State of Wisconsin can sell or contract out management of state-owned heating, cooling and power plants without the requirement that bids for such a sale or leasing be solicited so as to maximize what the government can pocket through such an arrangement.

Put another way, the state can pick who they want and make whatever deal they want without anyone else having a chance to bid on the deal.

You have to admit- that is pretty unusual. States typically have a strict responsibility to maximize any such sale or lease to fulfill government’s obligation to get the best deal possible for the people of the state.

So, who in the state of Wisconsin would be in a position to buy or operate these utilities such operations and benefit from a bid-free scenario?…

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