Reply #10: Arnold's secret meeting with Kenny Boy [View All]

Joe Conason's Journal
When Arnold Schwarzenegger gets around to attacking Gov. Gray Davis for the state's energy fiasco, someone should ask why he appointed Pete Wilson his campaign chairman.

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Aug. 11, 2003 | Arnold's secret meeting with Kenny Boy

If you're compiling a list of public figures even less popular in California than Gray Davis, one name is likely to top it: former Enron chairman Kenneth "Kenny Boy" Lay. Voters in the Golden State are behaving like sheep these days, but even the dimmest of them can probably remember how Enron and the other corporate vultures descended on them during the electricity "crisis" of 2001.

What California voters may no longer remember, however, is that after the third wave of rolling blackouts hit their state, Kenny Boy quietly summoned a select group to the Beverly Hills Hotel on May 11, 2001. And they may also have forgotten that one of the prominent Republicans who showed up at Lay's request was Arnold Schwarzenegger.

On June 21, 2001, the Associated Press reported that "Lay met secretly with California Republicans at the Beverly Hills Hotel and pushed a plan that called for ratepayers to pay the billions in debt racked up by the state's public utilities. The plan contended that federal investigations of price gouging are hindering the situation." According to William Bradley, the L.A. Weekly's sharp political columnist who wrote about Enron for the American Prospect, the meeting revolved around Lay's plans to "preserve deregulation" in California. The L.A. Times noted that Lay was seeking the support of Schwarzenegger and the other GOP luminaries for even greater deregulation. Apparently Lay wanted help in saving a lousy system, squeezing the unfortunate Californians even more, and avoiding accountability for their plight.
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http://www.salon.com/opinion/conason/2003/08/11/enron/index.html