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Letter: AES 'Completely Exonerated' in Energy Crisis Probe

AES Southland President Eric Pendergraft explains the outcome of an investigation into AES Southland in connection with the 2001 energy crisis.

It is unfortunate although somewhat accepted that political campaigns can occasionally get heated, but when an individual resorts to slanderous lies and character assassinations an ethical line has been crossed. Most recently, an employment law attorney representing the No Power Plant group and passing himself off as a land-use expert has been crossing that line routinely.  

It is true that AES Southland was investigated by the Federal Energy Regulatory Commission (FERC) during the 2001 energy crisis, just as almost every other electricity supplier in California was. FERC conducted numerous interviews, reviewed hours of taped phone conversations and hundreds of emails and ended its investigation without ever finding that AES Southland—or any of its officers or employees—did anything illegal.   

We did not pay any penalties or fines, accept any sanctions or have our market authority restricted in any way. There was definitely no fraud or massive blackouts as alleged by the No Power Plant representative. In no uncertain terms, we were completely exonerated—and for anyone to say otherwise is a complete fabrication.

In a nutshell, a “non-managerial” employee of our contractual counterparty, Williams, offered AES Southland an incentive to extend the length of an outage so that we could perform needed repair work. AES Southland refused the incentive and the FERC specifically wrote, “Williams did not ultimately pay to Southland any financial inducement to extend the outages and AES Southland maintained control of the outage schedule.” End of story.

There are only a few more days left in the campaign. Why don’t we let the voters of Redondo Beach decide their position on Measure A based on its merits and not on slanderous lies and baseless character attacks.

Sincerely,

Eric Pendergraft
President, AES Southland

Letters to the editor do not necessarily reflect the views of Redondo Beach Patch. Letters must be less than 500 words and are subject to editing for space, spelling, punctuation and grammar. Also, anonymous letters will not be published, so remember to include your real name. You can email your letter to Redondo Beach Patch editor Nicole Mooradian at nicole.mooradian@patch.com.

David Mallen March 4, 2013 at 07:05 pm
No worries, Tim.
Thanks for respecting my research. I respect your service to our country as a Vet. I have done my best to stick with facts and law. Now I must fight to protect my name and reputation against a very powerful man and an $18 Billion company. Anything you can do to help would be appreciated. The power plant people don't play nice, Tim. I cannot have these folks over for tea and crumpets and just talk stuff out. They stand for their shareholders profits only. I stand for democracy, capitalism, and the right of my neighbors and I to vote without fear or intimidation. I have taken a sworn oath to uphold the constitution and the laws of the United States. I drive a Mazda 3 and a beat-up Toyota Mini-van when hauling my 3 kids, not a limousine, haha. I did not vote for President Obama. Thanks for your comments. Enjoy the day. David
Fred Reardon March 4, 2013 at 07:33 pm
Tim,
Here are the facts: No on A - We get a new polluting power plant Yes on A - We have much better odds of stopping a new power plant. While your wrapping yourself in the American Flag, why are supporting AES's efforts to build a power plant that will benefit their big Chinese stockholders. Why is AES letting themselves be taken over by foreign interests? Why are you supporting a company that appears to selling off America's infrastructure to foreign countries?
Fred Reardon March 4, 2013 at 07:54 pm
Don't forget, while AES claims innocence for all past incredibly questionable activities, they are planning on not so innocent large increases in particulate matter pollution in Redondo Beach. On February 17, 20113 Rice University released new analysis that links particulate matter to cardiac arrest. Studies show particulate matter also has direct impact on heart attacks:
http://news.rice.edu/2013/02/17/rice-university-analysis-links-ozone-levels-cardiac-arrest/
Tim Sole March 4, 2013 at 08:10 pm
Fred, I'm at work, but I will check out the "Chinese Stockholders" issue tonight. If that's true, we may just be on the same side of something.
Jack Charles March 4, 2013 at 08:41 pm
"Useful idiots"...a phrase popularized by the right-wingnuts in the blogosphere. Yaaaaawn. Zzzzzzz.
Jim Montgomery March 4, 2013 at 09:19 pm
Mary, I respect your opinion as this is America and we all have a right to our opinions. However, how is giving reference to documented evidence of fraud perpetrated by AES and Mr. Pendergraft irrelevant? I don't know Mr. Pendergraft personally and in public he seems like a nice enough person, however, I take exception with what he did behind closed doors with Rhonda Morgan of Williams back in 2000 helping to defraud Californians of $10 million dollars. And Councilman Aspel has publicly stated what he thought of AES and Pendergraft during the Measure UU fight in 2009. "“Unfortunately, people who voted by absentee ballots were voting based on fear and not the truth,” Aspel said. “I firmly believe people were duped by AES. And I will reiterate: our relationship with AES is forever tainted. Eric Pendergraft can now happily climb back in his cave in Huntington Beach and leave us alone. There is not going to be any love between us at all.” Who do you trust? Councilman Aspel who has served the city for many years and is now running for mayor or the president of a large corporation whose fiduciary responsibility is to maximize shareholder return not the quality of life of the residents of South Bay. I like capitalism when it plays by the rules, I take exception when you use fraud to separate me from my hard earned money. I make references to evidence in my posts and justification for my statements. Feel free to challenge anything I have posted. Warm regards, Jim.
Jim Montgomery March 4, 2013 at 09:23 pm
All, Mr. Pendergraft is the president of AES Southland, and not the entire AES corporation. In re-reading my post I realized it was not clear.
John Mirassou March 4, 2013 at 09:41 pm
Mary, Measure A supporters' facts have been proven wrong again and again, time after time, every one of them. They have nothing left so they sling mud. What do you expect from a group that are trying to steal someone's property rights. Eventually the truth prevails.
When voters stop believing the message the only option left is to attack the other side personally. That's what they're doing. But if you look at the blog they are only screaming to each other. No one believes them, no one cares for their message so they sit on their computer, using electricity, and yelling at the wind..
Jim Light March 4, 2013 at 11:26 pm
John,
Kindly tell us any facts from the above that are inaccurate. You know full well that everyone here is a law abiding citizen and would not stand for stealing. You have yet quote one caselaw or reveal your lawyer friends names. Anyone can take anyone else's statement and simply say you are wrong. That is easy. Substantiation of a position is what gives it credibility. Measure A is simple rezoning. Cities do it all the time. Redondo does it all the time. Zoning laws exist to make sure development is compatible and does not unduly affect surrounding uses. A power plant has huge impacts. It pollutes and it blights. It affects the entire harbor area. AES bought the plant knowing it was old and that it only had a contract through 2018. They know they have no right to build a new plant. Perhaps the Breeze sums it up best: "Opponents of the measure argue that the city shouldn't be able to rezone a property to change its future uses. Actually, it is not only well within a city's rights, it is common. Indeed, one the reasons for a city to exist at all is to set the desired land uses in its boundaries. "
Long Time Redondo March 5, 2013 at 01:07 am
Out of curiousity, why does an employment lawyer, who alleges to have no dog in this fight, spend day and night posting about land use and SLAPP, topics he readily admits to having no expertise in? Seems really strange.
Jim Light March 5, 2013 at 01:10 am
Perhaps he is passionate about what happens to our waterfront. I have been working on Measure A for almost two years and I have nothing to gain from it.
Long Time Redondo March 5, 2013 at 01:15 am
I have never seen such a large in-kind donation to a candidate as has been made by Patch.com to Jim Light in this campaign. While I don't think you're going to win, so it doesn't matter, I'm just stunned at the 100s if not 1000s of column inches that have been consciously donated to your campaign through blogs (not comments) by Patch.com
Dana Strauss March 5, 2013 at 01:32 am
Jim Light-David Mullen...An Activist and a Lawyer. Based on all his posts, Mr.Mullen must not be working at the moment, instead auditioning for a job if Prop A passes. With Mr.Light's history of extracting large amounts of Tax Payers money ($300.000.00+) from the City of Redondo to pay another lawyer (Frank Angel), Mr. Mullen sees an opportunity!
Fred Reardon March 5, 2013 at 01:38 am
"Long Time Redondo" code for PiMBY just like "Redondo Moms"
Jim Light March 5, 2013 at 01:39 am
Patch allows anyone to blog as much as they want. They reached out to all candidates. But please note, I've dedicated very little to my own campaign. I started blogging to bring awareness to the AES power plant issue, before we ever contemplated a ballot initiative. patch offered to pay me for the articles, but I refused because I was biased.
Long Time Redondo March 5, 2013 at 01:43 am
I see stacks from my house, just like I have for decades. Do you?
I don't think that setting the City up for litigation is a good idea. Apparently you do. That's tyranny of the majority I suppose, if you win.
Long Time Redondo March 5, 2013 at 01:48 am
Crap - I missed the one that Brand and Light had their lawyer Angel paid $300K.
Even the City Attorney said Light and Brand were not working in the publc good. Nice job Light and Brand. I wonder if they got a commission? Webb said. “They claimed to be acting in public good and they weren’t. The only difference is we don’t spend a lot of time on PR for the lawsuit we won…They filed two lawsuits but the way state law is, the city has to pay their attorney’s fees and they don’t have to pay ours in the one we won.” According to Brand, the council originally estimated that the litigation fees would reach $30,000 – $70,000. Councilman Steve Aspel felt that the amount of money, largely based on Angel’s $550 an hour fee, was wildly excessive.
Jim Light March 5, 2013 at 01:51 am
Dana, why attack and impugn another's motives? Couldn't Mr Mullen just be a concerned resident?
And despite cries for civility you dredge up a three year old lawsuit and misassign the blame as your colleagues always seem to do. It is your city council who cost taxpayer money as a judge found they illegally violated the City Charter. Over 100 residents testified they would sue the Council if they ignored the charter, but our Council did it anyway. Over 200 residents contributed to get the lawsuit going. One resident had to put their name on it. So I did. The illegal actions of the Council cost the city the legal fees. And then they doubled the cost by filing a frivolous appeal that three judges threw out by a unanimous vote. You are pointing the finger the wrong direction. If the No on A crowd wants to keep this civil, they need to stop the personal attacks and stick to the pros and cons of Measure A and a new power plant.
Jim Light March 5, 2013 at 01:57 am
Long Time Redondo - perhaps he feels the hypothetical risk of lawsuit is far outweighed by the certainty of 50 years of powerplant blight and pollution if Measure A is defeated.
I hardly call ending a use that blights the whole harbor area, pumps out tons of pollutants each year, and generates a paltry $400K in city revenues from 50 prime waterfront acres "tyranny". I call it common sense. But to each their own.
Dana Strauss March 5, 2013 at 02:05 am
Not an attack Jim, and observation!
Jim Light March 5, 2013 at 02:20 am
Hardly... reread it. Perhaps if I said it seems like you must be getting paid by AES, you too would feel attacked and I could respond just as you did above....no attack, just an observation. ..... Why impugn people' motives? Why twist the past? It hardly adds to the discourse. You can't cry about civility while you continue to throw out your own jabs.
David Mallen March 5, 2013 at 02:21 am
Long Time Redondo:
Thank you for your question. The short answer is: I got involved because my wife asked me to speak out. Four weeks ago I did not know my Councilman's name. My wife asked me to do some legal research on Measure A to assess the truth or falsity of what AES was saying on its mailers and what City Councilman were telling voters. So I spent 20+ hours reading Measure A, researching Supreme Court case law, reading the history of zoning for AES acreage, and looking at land use success stories of other coastal areas. Then I talked to real estate lawyers, land use lawyer, and real estate developers. I concluded that the AES campaign is pure propaganda. It's bullshit. My wife asked me to speak out, because neighbors were afraid of the lawsuit threats. I am a self-made man, from humble beginnings, with a wife and three kids. I work for myself. I have my own law office with many business clients. My wife and I want to retire in Redondo Beach. Our neighbors are like family. Even "Bob" from Wisconsin, the guy who blasts away at me, was like family. Bob has a wonderful family. Once I put my conclusions in public, strangers attacked me and my professional reputation. My reputation is important to me. Any other questions? Good. My question to you: Is your opinion more worthy than my21 years of experience and my extensive research and investigation?
David Mallen March 5, 2013 at 02:30 am
Dana Strauss:
I work from 8:00 a.m. - midnight most nights. My clients can call my cell phone up until midnight. I live my work. If you don't think the most important local election issue of my life and my kids' lives is worth the extra effort, and you prefer to pop up on a blog the night before an election to question my motives, I feel sorry for you. Your post makes you sound terribly cynical and unhappy. I hope you see that life has more wonderful possibilities than just doing something for a quick buck. I also serve on my son's soccer club's Board of Directors, and I enjoy that and other volunteer work. It gives me balance. I will get more sleep and spend more time with family and clients after March 5. Good evening to you, Dana Strauss.
David Mallen March 5, 2013 at 02:35 am
Mr. Light:
I am a very positive person. I am also very good at calculating risk. Every day we wake up is a calculated risk. We could get hit by a bus. We could get called out by an energy company VP. Living a full life is worth the risk. The people who hear the word "lawsuit" and go into a shell are people who do not fully understand risk vs, reward. I speak out so that voters can focus on the rewards of no power plant without fearing the small risks. If AES Southland convinces the California Energy Commission that people of California need its power, I am fine with result. If not, AES Southland has many positive incentives to work with City Council and the residents of Redondo Beach, in order to maximize shareholder value. As a Mediator, I always look for ways to create a bigger pie and a win-win situation. I wish more people would focus on that. Enjoy your evening, Mr. Light, and good luck to you and all the other candidates for office. We'll be paying closer attention from now on, haha.
David Mallen March 5, 2013 at 02:51 am
In my opinion, the truth prevailed when Mr. Pendergraft posted a misleading letter that attempted to wash the stain off his actions and his employer's actions, and dozens of residents called him out. Just ordinary people. Not paid a dime. No financial incentive.
John, I hope one day you will learn that most people can connect the dots on their own. When you try to bludgeon your audience, your message is lost. I am surprised AES Southland hired a local who has no clue on the art of persuasion. It makes no sense to continue to "beat up" your opponent until morale improves, John. You should also take a cue from the "Kelly Sarkisian" persona. The person behind that name knows how to bait people and is much more effective than you in getting her message across and victimizing her opponents. My two cents..... Have a pleasant evening, John. It's not personal. It never was.
David Mallen March 5, 2013 at 02:53 am
You are welcome, Mark.
Thank you for the kind words. High praise from a neighbor, for sure. My wife appreciates it, too. Hope to meet you and the many other Measure A bloggers some day, even the ones who disagree. Seriously, we should have a Measure A blog party and even invite Eric Pendergraft.
David Mallen March 5, 2013 at 02:59 am
Long Time Redondo:
I have patiently answered your questions. Now, would you kindly answer mine? Do you think your legal opinion is superior to a lawyer with 21 year of litigation and trial experience who has talked to land use lawyers, real estate lawyers and developers on this very issue AND studied the history of AES zoning and patiently listened to the concerns of folks who disagree? That would be a Yes or No, sir.
Kelly Sarkisian March 5, 2013 at 06:48 am
But Jim, that's what all of your friends have done to me. Those in glass houses...
Kelly Sarkisian March 5, 2013 at 06:52 am
I didn't think you would reply. I'm shocked that you are a "lawyer". I always assumed lawyers would use their words carefully. I also have seen lawyers grandstanding as a way to get their name out there. You have a anger issue. You act like a common thug by threatening people. Once again, I'm not sure you are a lawyer and I'm NOT impressed!
Wolfman March 24, 2013 at 02:03 pm
David, You need to get a life or better yet get a city job

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