Small world (Jack Bog's Blog)

The other day I was ragging on Delta Airlines for the cruddy service it provided to my family and me as we journeyed to and from Atlanta last weekend. As an alert reader pointed out, there's an interesting Portland connection to the near-bankrupt Atlanta-based Delta these days: The airline's CEO, Jerry Grinstein, is a key player in the Texas Pacific Group's plan to buy Portland General Electric. He is one of the directors of Oregon Electric, the TPG affiliate that would take over the PGE system.

Grinstein may also turn out to be a key witness in the investigation into Diana Goldschmidt's alleged conflict of interest relative to TPG and the PGE deal. Lady Di voted as a member of the Oregon Investment Council last Oct. 29 to invest state pensioners' money in TPG. According to her husband Neil's version of the events, TPG first offered him the position of chairman of the board of Oregon Electric on Oct. 30. And as state investigators hover around asking whether Mrs. G. knew about the pending deal with her husband when she cast her vote on the council, the suits at TPG are swearing that they never told her. (Meanwhile, Governor Ted has seen enough, and fired Mrs. G. from the council.)

You have to wonder how much Grinstein, who is described as a long-time good friend of the disgraced former governor, told either or both of the Goldschmidts before Oct. 29. According to the Portland Tribune, Grinstein knew about TPG's plan to take over PGE as early as 2002. Apparently he was the inaugural director of Oregon Electric long before the Oregon Investment Council vote. And people in the State Treasurer's Office were reportedly aware of TPG's plan by the summer of 2003.

Are we to believe that Neil didn't know by Oct. 29 that he was going to get a piece of the action? Or that if he did, he didn't tell his wife?

I guess it would be easy enough for Attorney General Hardy Myers to subpoena Grinstein's appointment calendar and phone records, and those of the Goldschmidts, to try to find out.

Comments (7)

So Jack, if you don't like the Texas Pacific bunch, and you are also against city ownership of PGE, who do you want to supply electricity to Portland? Ken Lay?

Posted by Gordo | October 6, 2004 8:50 AM

I've always thought the assertion that Diana and Neil never talked about it was the most ludicrous thing I've ever heard. My sweetie and I talk about the price of chickens at Fred Meyer... and we're not even married!

Posted by Dave Lister | October 6, 2004 10:33 AM

Gordo: As a city taxpayer (not a PGE customer -- we get ours from Pacific Power, Mrs. G's former employer), I'm horrified at the propsect of the City Council running (or even overseeing) PGE. But it appears it's going to be either the city or TPG. As between the two, I am coming around to the view that the city would be a beter owner.

Posted by Jack Bog | October 6, 2004 12:20 PM

Might I suggest that public ownership of PGE doesn't necessarily mean the city council will run the utility. Here in Eugene we have had a public utility for many years, the Eugene Water & Electric Board, whose board members are elected. The same with the Springfield Utility Board next door and the Emerald People's Utility District which covers much of the rest of Lane County. All three provide affordable electricity in an efficient manner.

Posted by Jack Roberts | October 6, 2004 8:26 PM

Jack, have the linemen in your neighborhood started wearing kilts yet?

Posted by Gordo | October 7, 2004 9:04 AM

I'm horrified at the propsect of the City Council running (or even overseeing) PGE.

Is that why you weren't so pleased with the idea?!

But, but...the city council would do nothing of the sort. No other public utilities where I have lived are really at all connected with city front office. The latest one I bought from was EWEB in Eugene. You really might want to do some reserach into their organization. I think you'd like what you saw.

Posted by pdxkona | October 10, 2004 5:56 PM

From what I've read, Portland would not use the EWEB model. The city would hire a private energy company to run the utility on a day-to-day basis, with oversight by the City Council and some appointed board or other. (BTW, that private company would be tempted to gouge, just as Enron did.) Not an elected board, and no on-line employees. Maybe Commish Sten can correct me if I'm wrong.

Posted by Jack Bog | October 10, 2004 10:11 PM

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Wednesday, October 6, 2004

Small world

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