Secretary of State Urges Audit of Energy Expenses

Secretary of State Bill Jones on Tuesday accused Gov. Gray Davis and legislators of mortgaging the future of California’s children by spending billions of taxpayers dollars on the energy crisis.

“There is no oversight and no accountability to ensure that the taxpayers’ money is being spent wisely,” Jones said. “The enormous outlays of money to purchase energy on a daily basis, as well as these binding, long-term contracts, will have a tremendous fiscal impact on the state for years to come.”

Jones called on state Controller Kathleen Connell to begin an immediate audit of all energy-related financial transactions. Those include the state’s $45-million-a-day purchases of energy on the short-term spot market--purchases that it is making on behalf of the near-bankrupt utilities--and $43 billion worth of longer-term power contracts negotiated in recent weeks.

Jones also urged Davis to brief legislators of both parties on the terms and costs of all electricity contracts and purchases--much as the president briefs congressional leaders on issues of national security.

Davis has kept such details confidential, despite persistent requests from several Republican legislators and the media. What is known is that, since the first of the year, the state has committed about $3 billion to keep power flowing in California, money that is supposed to be repaid through the sale of revenue bonds, beginning in May.

Last month, Connell moved to divulge details of the contracts on her Web site, but backed off when the Davis administration warned such a move could harm negotiations. Since then, she has asked for an opinion from state Atty. Gen. Bill Lockyer on whether to release the information. She expects an answer by the end of the week.

Bryon Tucker, a spokesman for Davis, defended the governor’s refusal to disclose details of the power purchases, arguing that confidentiality saves taxpayers money.

Tucker said: “We still have more contracts to negotiate so [secrecy] puts the state in a position of power in negotiations.”

Tucker added that Davis has been sharing information with some legislative leaders and would release a report on the power purchases to the Legislature by the end of the week.