It looks like there could have definitely be collusion between the Allens to benefit themselves and their friends in the utility industry. Susan Allen was on the Board of Directors for Dominion Virginia Power (Dominion Resources)in 2003, 2004 (not sure about 2005 yet), and George Allen was appointed to the Senate Committee on Energy and Natural Resources in January, 2005.
Susan Allen does not have a background in the utility industry. It is not clear to me why she was nominated to serve on the Dominion Board, except that she was formerly the First Lady of Virginia, and the wife of a US Senator. Her compensation should have been $55,000 base, plus $2000 for each board meetings. In 2003, I estimate that she got $71,000 for Dominion.
As part of the Senate Energy Committee, George Allen helped to craft the Energy Policy Act of 2005 (Public Law 109-58). The Act provides billions of dollars of tax relief for utility companies like Dominion.
At the time of passage, the Washington Post reported that the Energy Policy Act was "...a pi+¦ata of perks for energy industries".
"The bill exempts oil and gas industries from some clean-water laws, streamlines permits for oil wells and power lines on public lands, and helps the hydropower industry appeal environmental restrictions. ... would repeal a Depression-era law that has prevented consolidation of public utilities, potentially transforming the nation's electricity markets.(See http://www.washingto...)It also includes an estimated $85 billion worth of subsidies and tax breaks for most forms of energy -- including oil and gas, "clean coal," ethanol, electricity, and solar and wind power. The nuclear industry got subsidies for research, waste reprocessing, construction, operation and even decommission. The petroleum industry got new incentives to drill in the Gulf of Mexico -- as if $60-a-barrel oil wasn't enough of an incentive. The already-subsidized ethanol industry got a federal mandate that will nearly double its output by 2012 -- as well as new subsidies to develop ethanol from other sources."
Critics of the Act consider it a multi-billion dollar giveaway to utility companies like Dominion, where Susan Allen was on the Board of Directors.
As you might expect, Dominion liked the Energy Act of 2005, which George Allen helped to craft.
From the Domion power press release of July 29, 2005Dominion Applauds Passage of Energy Policy Act
RICHMOND, Va. GÇô Dominion (NYSE: D), one of the nation's largest energy companies, applauds passage of the federal Energy Policy Act of 2005 and the benefits it will bring to the nation's energy infrastructure, consumers and the environment.
It is not surprising that Dominion would applaud the Act crafted in part by Senator George Allen, whose wife Susan sat on the Board of Directors. They got a lot of money from the US Government because of it.
According to the Nuclear Energy Institute, Dominion Resources is in line for DOE funding for a new nuclear plant at Lake Anna. (see http://www.nei.org/i...)
DOE begins joint government-industry projects with three nuclear energy companies applying for early site permits to build new nuclear plants. DOE has partnered with Dominion Resources, Entergy, and Exelon to submit applications to the NRC for early site permits that would enable these companies to locate new nuclear reactors at current nuclear plant sitesGÇöthe North Anna power station site in Virginia, the Clinton site in Illinois, and Grand Gulf in Mississippi. DOE is sharing the cost of first-time demonstration of the new permitting process, with each company providing at least 50 percent of the funding.
Is this a quid pro quo arrangement???
Senator's wife resigns from utility's governing board
By BOB LEWIS
Associated Press Writer
362 words
4 January 2005
08:52 PM
Associated Press Newswires
English
(c) 2005. The Associated Press. All Rights Reserved.RICHMOND, Va. (AP) - The wife of U.S. Sen. George Allen on Tuesday resigned her seat on the board of directors of the state's largest utility ahead of Allen's landing a post on the Senate Energy and Natural Resources Committee.
Susan Allen's membership on the Dominion Resources Inc. board and the annual stipend of at least $55,000 the power company pays each of its directors had raised conflict-of-interest questions about the Virginia Republican's proposed committee assignment.
"As of today, I submitted my resignation based on George's new leadership position with the Energy Committee," Susan Allen said in a telephone interview.
George Allen for years has advocated greater use of domestic oil, gas, coal and other energy reserves to reduce the nation's dependence on imported oil. That includes opening vast areas of Alaskan wilderness to oil exploration, a measure that environmentalists have fiercely opposed.
When Susan Allen secured her seat on Dominion's board in 2003, watchdog organizations suggested that the energy giant was attempting to curry influence with her husband.
Allen's name surfaced late last month as one of three new proposed GOP appointments to the Energy Committee in a list circulated among offices of Republican senators.
"He wasn't sure he was headed for that committee by a stretch," Susan Allen said. "When he brought the option to me I said that if that does happen I will step away from Dominion for you."
Besides the cash Dominion board members receive for their service, they are also compensated in stock. Susan Allen said she had not yet decided whether she will sell her Dominion shares.
Dominion is among of Virginia's most influential campaign benefactors. Since 1999, the Dominion Political Action Committee has contributed $13,000 directly to Allen, including $5,000 in 2004, according to reports on the Federal Election Commission Web site.
Allen, a folksy, popular former governor, was elected to the Senate in 2000, denying Democrat Chuck Robb re-election to a third term. He is up for re-election next year.
1) Her appointment to the Board appears to be a matter of privilege, due to her husband's influence as former governor and US Senator.
2) Regardless of whether her husband was on the Senate Energy Committee, Susan's acceptance of the Board nomination while her husband was serving as the Senator from Virginia- where Virginia Power is based- opened the door to undue influence on legislation that would benefit her.
3) No word in the AP article on Susan's stock holdings, but they could be substantial. The stock price for Dominion (Ticker: D)has gone up by over 30%- about $20 per share- since she was on the board; the greatest increase in price at Dominion occured after 2005, when the Energy Act of 2005 had been passed.
4) Dominion is one of the largest contributors to the Allen campaign, and to Friends of George Allen.
5) Patterns of behavior by the Allens suggest that they do not mind being a position to use political influence for personal benefit, either directly or indirectly. George Allen's securing board positions with companies that he helped while Governor, his non-disclosure to the Senate after year 1 regarding stock options gained from those companies are part of the pattern.
George Allen uses Susan in political ads, and commonly refers to her in public speeches as though they are co-senators. She is brought up to "soften his image".
By taking the Directorship at Dominion, Susan demonstrated a willingness to accept the risk of a conflict of interest that betrays public trust when it was expedient for her and George. Maybe she was being used by George in this, and too naive to get it, or maybe she knew exactly what she was doing, and chose to push ahead anyway.
Either way, I wouldn't trust Susan Allen any more than George.
But Mike Waldron, a spokesman for the Republican senator, said both Allens have signed an agreement not to discuss with each other any issues concerning Dominion Resources. Waldron said he was not clear whether the pact was suggested by Dominion or Senate officials."Since Sen. Allen was first elected to office, the Allens have always been known as people who go beyond the letter of the law to make sure their actions are on the up and up," Waldron said.
Of the 15 people up for election to the board this month, 10 are current or retired business executives. The five remaining nominees include two doctors, a college president, an optometrist who serves in the state Senate, and Allen. Although she is a former hotel marketing director, Allen is listed in the 2003 proxy statement as a community volunteer.
Allen is one of two new members proposed for the board, while the remaining directors are seeking reelection. Hunter Applewhite, a spokesman for Dominion Resources, said the board committee that recommends new nominees does not disclose how they are chosen.
Applewhite said board members are not required to have extensive business backgrounds.
"Mrs. Allen would bring an array of experience, including her involvement in a number of public service organizations," he said. "She's broadly qualified." [1]
And in the same article the conflict is quite obvious.
Allen does not serve on the Senate committee that handles energy issues, but he will be voting on several tightly contested energy deregulation and nuclear power bills.One is a major energy bill scheduled for a vote in early May, shortly after Susan Allen is expected to be elected to the Dominion Board. Lisa Gue, an energy analyst with Public Citizen, said the legislation includes a measure to continue a program that provides government assistance for new nuclear reactors. Gue said Dominion has already obtained one grant from that program.
Waldron was not very successful in redefining Susan Allen's career. In a listing of the board members a year later, she is listed not as former marketing director, not as former community volunteer, but as Susan Allen, Wife of U.S. Sen. George Allen, Virginia Republican.[2]
1] April 8, 2003: Knight Ridder/Tribune Business News, 'Wife of U.S. Senator from Virginia Is Nominated for Seat on Utility's Board, Christina Nuckols.
[2] April 11, 2004: Plain Dealer, 'Dominion Resources admired as utility,' Marcia Pledger.
MONOPOLIES SHOULD ALWAYS BE REGULATED....HOPEFULLY VIRGINIANS WILL BE ABLE TO STOP DE-REGULATION...BUT NOW WITH FOLKS LIKE GEORGE ALLEN IN POWER...
VOTE ALLEN OUT....Save the Middle Class....Vote Allen Out...Save the Middle Class.....
Buzz...Buzz....Mosquito