December 21, 2000

We have in place a task force right now among cabinet members and among various government agencies, to assure that if there are those who suffer as a result of higher energy costs, that we have a way to meet their needs.

Reporters (in order of appearance):

KEN VERDOIA, KUED
DAN HARRIE, SALT LAKE TRIBUNE
TOM JORDAN, METRO NETWORKS
CHRIS VANOCUR, KTVX
PAUL ALLEN, LOGAN HERALD JOURNAL
BOB WARD, OGDEN STANDARD-EXAMINER
LEE AUSTIN, KUSU-FM
SHERYL WORSLEY, KSL RADIO

Transcript:

KEN VERDOIA, KUED: Governor, thanks for joining us today. Utah's not alone in facing a multi-front energy crisis right now. The gasoline prices have started to ease somewhat in recent weeks, but consumers are now facing potential shortages and promised huge increases in rates for natural gas and electricity. This hits every facet of society. But one of the great concerns could, in fact, be the way it impacts the elderly on fixed incomes, and our poorest people living below the poverty level. Are you going to propose increased funding for state programs that help those people meet their energy bills?

GOVERNOR LEAVITT: We have in place a task force right now among cabinet members and among various government agencies, to assure that if there are those who suffer as a result of higher energy costs, that we have a way to meet their needs. I've formed a working group that includes utilities and The League of Cities and Towns, and various cabinet members to address that very issue. We have in existence funds that are available to help people in those circumstances. This problem is one of- - I would categorize it as one of the most serious order. This is not a small problem. It is a significant structural, long-term dilemma--by long-term I mean over the next two to five years--we're going to struggle with this. And the immediate impact, I believe, will undoubtedly be higher energy costs. It's a very complex circumstance that involves the entire western corridor of the United States, and it is a result of inadequate supply. We simply have not been building supply to meet the growing demands of the west, and we are now having to live with the dilemma. It is, has been added to by the fact that California has adopted a regulatory scheme that makes them almost entirely dependent on what's known as the spot market, so they're quite vulnerable to spikes in cost. There's not been the water in the northwest, gas prices are high, there have been some plants go down as a result of maintenance and other circumstances. All of those have added up to a very difficult short-term problem, and a complex and difficult long-term problem.

DAN HARRIE, SALT LAKE TRIBUNE: Do you see California as a warning sign to Utah, which has been kind of slowly moving towards deregulation, or indicating it wants to move that way?

GOVERNOR LEAVITT: Well it certainly validates the go-slow attitude that we and other states have taken. They have adopted a system there that looks good on paper, but when you get into the complexities of it, there are obviously down sides that are now revealing themselves. They've got to do something in California, because it's affecting us all. And their Public Service Commission needs to act, and they need to act in a way that will assure that their utilities in California are kept financially solvent. There are major utilities, blue chip, household name utilities in California, that have been considered among the most stable and the most reliable organizations in the world, who are within weeks of Chapter 11 bankruptcy. That could happen to any utility in this country under the circumstances that they find themselves. That's a very harsh thing for an economy, and it will not just affect power users, but many, many of the elderly who rely upon their investment in those utilities as an income. So it's- - This is a very, a significant dilemma, and one that's going to have to be acted upon carefully and by a lot of different agencies, people, organizations, and communities.

KEN VERDOIA, KUED: There are those that say there are environmental consequences of this, as well, if we, in fact, put greater emphasis on bringing up to full capacity coal-fired electric generating plants. If we issue a command to the Glen Canyon Dam to produce its maximum amount of hydroelectric water, there are serious environmental consequences downstream in the Grand Canyon, in our air quality. How do we address those?

GOVERNOR LEAVITT: Well, this brings in a direct conflict the dilemma of sustainable economy and sustainable environment. We can have both if we find the balance. One might ask whether or not the position we find ourselves in today is a result of the fact that we may have gone too far one way. It's been ten years in the west since we've had any new production built, and one must ask the question, when will we see it next? We don't hear people talking about building any new hydroelectric dams. It's- - When was the last time we had a serious conversation about a coal-fired power plant? Nuclear is certainly not something we want to see built generally, or that there's a public mood for. And then you get into the gas, which is the other means of doing it, the gas prices are triple what they've ever been before. So you start stacking up the alternatives, the only one that seems to be an immediate answer, and a good answer, is conservation. And that has to be part of any plan. On the other hand, conservation will only go so far. We'll continue to see growth in the west, we know that. And in order for us to maintain a sense of global competitiveness, or regional competitiveness, we have to have electric power and energy that's reliable. This is one of the staples of prosperity, the capacity to provide electric power that's reliable. And that's particularly true in an information economy, where so much of the production and so many of the things that we produce have high concentrations of electric power.

TOM JORDAN, METRO NETWORKS: Isn't it true that this, though, at this point, 32 million people just didn't all of the sudden move to California and turn their computers on simultaneously. Isn't this also a matter of bad corporate planning? Shouldn't the utilities have been the ones who were saying, "We're going to have a problem we can see it coming," and suddenly all of us as rate payers are the ones who are going to be bailing them out.

GOVERNOR LEAVITT: Well, I'm not in a position to evaluate how far ahead they have been in saying there's a problem here. But this has not been just a matter of corporate policy. This has been public policy. California created an environment where the tradition of having a firm load of electricity that people could rely upon as a foundation piece of their economy was jettisoned, and they traded an atmosphere where the marketplace was entirely dependent, relied upon, for power, and they drove the price to the lowest possible price every time. Well, that worked great until there was a shortage in demand--or in supply. And once that happened then we saw price spikes jump radically. And this is a function of balance. I'm a big believer in markets. I believe the market should be used as a means by which we guide our consumer activities. On the other hand, this idea of balance is so important, because there are times when the market can go up as fast as it can go down. And when it goes up and you start seeing gas prices at $5,000 per megawatt, when we're accustomed to paying 20 or $25, that's when we start seeing these radical changes. Now, we have nearly 80 percent of the municipal utilities in our state who are currently under some substantial financial distress because of these changes. And I've laid out a 5-part strategy at a meeting last Saturday with representatives of the producers and municipalities. It includes the- - First of all, we're going to hold a meeting on January 5th, to ask ourselves the question, "What are our long-term needs for the next ten years, and how are we going to meet them?" I've also initiated, what I told Ken about a few minutes ago, to make certain that in the short term we don't have people who are being hurt because they lose their power or because they are without heat. We have also begun to initiate a regional approach to this. I met yesterday with five governors and we've initiated a national strategy, and we have also begun the process of asking, "How can we accelerate the advent of some new production?"

CHRIS VANOCUR, KTVX: Governor, if we could devote our energY to a different topic for a moment. You recently came out with your education plan, the legislative leadership has done the same, the state's largest teacher's union held a one-day job action to, apparently, send a message. Would you say, in terms of education, the state is at a crisis point, or just a critical juncture?

GOVERNOR LEAVITT: I would say we're at a crossroads where we need to increase our investment, and increase the quality, as well. Not to take us back to electric power, but I will say there are some staples in a 21st Century economy. Energy is one, highways, water. There are some new ones in the 21st Century: Bandwidth and brain power. Those are as essential to the prosperity of a 21st Century economy as electric power and water were in the agrarian time. Now, we still need to have all of them, but an investment in education that increases the quality, doubles the number of our graduates in computer science and engineering, that will assure that children have the capacity to read, very important long-term investment in the state.

CHRIS VANOCUR, KTVX: Is what the UEA is doing, is that helping or hurting their cause?

GOVERNOR LEAVITT: Well, they've wanted to make a statement and they made it. I don't think it was a new message, and one that we hadn't heard before. I wish they hadn't done it. They did, we got through it, and we'll move forward. I don't think it had a lot of impact. I had my budget plans already made, and I think that there was an appetite in the legislature to make the investment anyway.

KEN VERDOIA, KUED: Governor, we're going to turn our attention now to our microwave location in Logan, and a question from Paul Allen with the Herald Journal. Paul?

PAUL ALLEN, LOGAN HERALD JOURNAL: Yes, Governor. With a goal to speed up this deployment of telecommunications that you, the infrastructure that you talk about, and with great strides and beefing up the Utah State University's technology up here, is if safe, then, to say that Cache Valley could be a major player in the smart site initiative that you talked about last week?

GOVERNOR LEAVITT: I believe that all of rural Utah will benefit from the initiative that I spoke of. Logan is considered one of our larger less urban, or rural communities. They already have a great deal of technology because of the university. They need some redundancy, which is basically two ways to get it in and out, in order for them to become the kind of center they need to be, but I feel confident we'll get there. I've had the mayor of Logan, Mayor Thompson with me in silicon valley. We have had great success. I was back again a couple of weeks ago, and two of the mayors that I had been with a month earlier were over closing deals. So yes, there's good success. I think Cache Valley will be a big part of it, as will other communities around the state.

DAN HARRIE, SALT LAKE TRIBUNE: Yesterday the legislators, Republican legislators came out and said they want to build up a reserve account for education. They're talking about taking $40 million out the first year, and putting that into this reserve account, building it up year by year. How badly do you think, if at all, would that hurt your plan to take $40 million out of it?

GOVERNOR LEAVITT: I'm proposing an additional investment in education. My biggest concern is that we not create ongoing obligations without ongoing money. I haven't seen their plan. I recognize the need that they are focused on, which is a significant need, and they would like to have some way of smoothing out our investment, rather than make a big investment now, and perhaps not being able to make investments of that stature every year, they're thinking of a smaller investment and be able to make it on a more steady basis. I'm open to that discussion. My proposal is as it is. I still believe that it's the best way to go, and I think there'll be a lot of discussion between now and the end of the legislature and we'll come up with something that's fairly similar to what I propose.

DAN HARRIE, SALT LAKE TRIBUNE: So you're not necessarily opposed to this idea of a reserve account. Are you opposed to the idea of that much money?

GOVERNOR LEAVITT: I'd like to hear their ideas. We did consider, in the context of our budget deliberations, the idea of putting a portion of this away for a future time. Most of us- -

DAN HARRIE, SALT LAKE TRIBUNE: Apparently you rejected that approach.

GOVERNOR LEAVITT: Well, I chose, because of most of it being one-time money. I'm interested in being able to make one-time investments now that will pay dividends for years into the future. I think the engineering initiative that I'm proposing, where I would use that money to build engineering facilities that could double the number of engineers in five years and triple them in eight, will fuel our economy, and ultimately allow us to continue making solid investments and increased investments. I am open to their ideas. I do think that the most important thing, however, is that we're funding ongoing obligations with ongoing money.

BOB WARD, OGDEN STANDARD-EXAMINER: Governor, in the past you've favored the concept, at least, of commuter rail linking some of the Wasatch Front. You did not include money for right-of-way acquisition in your budget. Can you flesh out that position, and will you advocate against an appropriation for commuter rail during the legislative session?

GOVERNOR LEAVITT: Well, I would like to see commuter rail built. I think it's incumbent right now on the UTA to come forward with a plan, and I've seen no plan. The key to that plan will be having the federal government pay 80 percent of it, and not 50. The problem is that the state is prepared, I think, to step forward on is in the operation or in the building of the acquisition of the right of way, but we need to have a plan, it needs to be shown to be doable before we begin recommending money for right-of-way acquisition.

BOB WARD, OGDEN STANDARD-EXAMINER: Is there an amount you could support if they came to the legislature looking for right-of-way acquisition funds?

GOVERNOR LEAVITT: It isn't just the right of way. We need to see a plan. We need to see that it's financially viable, that they can both build it and operate it. And that ball's in the UTA's court right now. I've been helpful and will continue to be helpful, and an advocate for long-term, some kind of commuter rail. But we need to see that it can be done, both on the constructions side and on the operations side.

KEN VERDOIA, KUED: Back once again to our microwave location. This time a question from Lee Austin of KUSU-FM. Lee?

LEE AUSTIN, KUSU-FM: Governor, I'm wondering if you've had a chance to provide any advice to the president-elect's transitioon guess team, and if there's been any response, particularly looking at the interior post?

GOVERNOR LEAVITT: Lee, I have had three meetings with officials of the transition team. Most of them have to talk about process. I believe that the vice president-elect will be the person most involved in the choosing of the cabinet positions. I have not had a great deal of interaction with them on those posts. Most of what I know I've read in the paper. I expect when we get to the interior secretary I will be consulted some. I have had a fair amount of involvement on some of the regional posts that they're now just starting to deal with, but it's moving so rapidly and had such a late start that we've mostly been talking process up to this point.

CHRIS VANOCUR, KTVX: Have they asked you to reconsider your commitment not to accept a job in D.C.?

GOVERNOR LEAVITT: We've not had that discussion, and I don't expect we will.

DAN HARRIE, SALT LAKE TRIBUNE: Envirocare, which has a radioactive waste facility out in the western desert, is concerned, they want to expand and be able to accept hotter radioactive waste, and they want to do it this coming legislative session. As it's set up now, they're not going to be able to meet that deadline, it's going to push it back another year. They are trying to get some kind of change so that they can speed that process up. Where do you stand on that? Do you think there should be an accelerated process to allow them to try to get that in the legislative session?

GOVERNOR LEAVITT: The process needs to be allowed to move forward. I've done nothing at this point to attempt to either speed it up or slow it down. It just needs to play out. And I don't think that there'll be any change. The legislature may choose to do that, but I don't see any particular likelihood that that will happen.

KEN VERDOIA, KUED: Governor, during the recently-completed election season, not a single major candidate for state elective office endorsed the ballot measure for English as the official language in Utah. No surprise. And now I ask you, as you face this as the state's chief executive, do you intend to implement it, resist it, or ignore it?

GOVERNOR LEAVITT: Well, I have no choice. It's the law, and therefore I'm sworn to uphold the law. We'll do our best to implement it in a way that is, has the least negative impact on people. I did not support the law. It's currently being challenged on Constitutional grounds. We will have a hearing, I think, sometime in January, and then we'll determine best how to do it and what its impact will be. We'll do all we can to mitigate any potential negatives.

KEN VERDOIA, KUED: Are you going pulling for those challenging the law?

GOVERNOR LEAVITT: Well, I have an obligation under the Constitutional oath I've taken to uphold it. There are parts of it that I suspect will be questioned, and questioned legitimately, and the courts will have to make that determination and I'll follow whatever the dictate of the court is.

SHERYL WORSLEY, KSL RADIO: Governor Leavitt, in light of the recent decision by the Army Corps of Engineers on the Legacy Highway, to go forward with that, that is now in the hands of the EPA. With Bush as president, do you see a friendlier EPA to the west and to Utah?

GOVERNOR LEAVITT: I hope so. There are many of our dilemmas in the west that depend on being able to find the balance between sustainable economies and sustainable environments, and we just talked about one, electric power. If you get at the heart of that problem, it's the environmental dilemma. And we need to have people at EPA, both at regional and national posts, who understand the uniqueness of the west, and the uniqueness of our challenge, and the uniqueness of the solution. So I'm hopeful that we will. But I'm very optimistic about the fact that the Legacy Parkway has, in fact, been approved by the Corps of Engineers. I have every confidence that within the next short period of time we'll have the final approval. I expect we'll have the bids in by the latter part of this month or early next month, and that we'll have funding, and I'm hopeful that construction can start sometime in the late spring.

TOM JORDAN, METRO NETWORKS: At that same level, what do you see as the advantages, or the benefits to Utah, the change of administration? You've done fairly well with a Democratic administration. What are you hoping will go better under a Bush administration?

GOVERNOR LEAVITT: Well, I hope we'll have those who understand the west better. Who understand, as I said earlier, the uniqueness of our problems and the uniqueness of the solution, and who will work with us in creating solution-oriented pathways, to solve some dilemmas that have been around for years. One of them being roads. My big priority right now is to work through the adjudication of roads. We have a lawsuit pending in federal court where we will undertake the quiet title action on what could be as many as 5,000 roads across public land. That's a huge undertaking, and one that could be accelerated with a cooperative relationship between the state, the counties, the Interior Department, and the Department of Justice. And I would very much hope that we could find ways to resolve it, short of just ongoing, endless, costly litigation.

DAN HARRIE, SALT LAKE TRIBUNE: Governor, are you still committed to restoring the committee on consumer services? We're talking about energy prices and utilities. Are you still committed to have that committee restored?

GOVERNOR LEAVITT: We will have an independent consumer services committee at the conclusion of the legislature. If we do not, as I've said before, I'll call a special session. It's a commitment I've made, and one I feel confident that the legislature shares.

DAN HARRIE, SALT LAKE TRIBUNE: In this environment that we're in, do you think that even highlights the need for some sort of consumer agency like that?

GOVERNOR LEAVITT: I think it highlights two things. The first is, consumers do need to have an independent voice in this process. Secondly, consumers are very badly served by an inadequate supply of electricity. And therefore they have a role in being able to be part of the solution. Roger Ball has attended all of the meetings that we've had on this matter, and he's been very productive, and I might add, quite realistic in assessing the nature of the problem, and has proposed solutions. Not all of which are happy solutions, but it's a hard problem. We'll get through it and they'll be part of the solution.

KEN VERDOIA, KUED: Governor, yesterday the attorney general-elect was asked to comment on the creation of a, what's being called the "porn czar's" position for Utah, but literally a chief legal officer aimed at policing this area, sensitive area of the law, and also crafting a comprehensive moral nuisance law for the state. The attorney general-elect, Mr. Shurtleff, said that this is a very, very difficult challenge, and one that may not work at the state level. In simple terms, why is this position necessary?

GOVERNOR LEAVITT: The legislature felt as though they wanted to provide some advice and help to local communities as they begin the process of crafting ordinances to deal with the issues related to pornography, and related issues. And so he or she, whoever is chosen, will ultimately be basically a consultant to local communities to help them.

KEN VERDOIA, KUED: So this will be more local community-oriented, rather than state-wide mandate?

GOVERNOR LEAVITT: In my sense that's the only way it'll work. Is that we ought to provide local communities with help in being able to craft ordinances and enforce ordinances that they have, but it ought to be more of a service organization than a police organization.

KEN VERDOIA, KUED: Perhaps it's not the easiest segue to go from that subject into the holiday season, but today is, in fact, the first day of Hannukah, we're four days away from Christmas day, and we're nearing the end of what's been a very interesting year for you, personally and politically. Tell me your reflections, your wishes for the state of Utah, in the final minute we have.

GOVERNOR LEAVITT: Well I wish all of you who are here--we work together on a day-to-day basis to keep the people of our state informed--a merry Christmas, a happy holiday. I would like also to wish the people of this state a happy holiday. This is a time in which I continue to be optimistic, and to feel great blessing. We're a state that has the richness of prosperity and an opportunity unsurpassed anywhere in the world. So as we pause now and go about our holidays, each with our families, doing our own traditions, may I join with you in expressing our gratitude, but also our optimism for the future. This is a great state and I'm proud to live here. Thank you.

KEN VERDOIA, KUED: Thank you, Governor. An invitation to you to join us for live coverage of the inauguration of Governor Michael Leavitt to his third term, and the other Utah State officials, on January 4th at 5:00 p.m. Our live coverage begins at 5:00 p.m. And a reminder, the transcripts of this and every edition of the Governor's Monthly News Conference on KUED are available on the internet, they're provided courtesy of the Utah Education Network. You can visit their web site at www.uen.org. Thank you so much for joining us today. Most appropriately, happy holidays to you and yours. We'll see you in the new year for the next edition of the Governor's Monthly News Conference. Good night.

Recorded: December 21, 2000, 10:00 a.m. Eccles Broadcast Center
Broadcast: December 22, 2000, 9:00 p.m. KUED-Channel 7
December 22, 2000, 11:30 p.m. KULC-Channel 9

 

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