Gov. Gavin Newsom is putting on quite a show. He flew to Switzerland for the World Economic Forum, Germany for the Munich Security Conference and the United Kingdom “to advance partnerships  in climate, business and trade,” as the London visit was described in an official news release. Unoffici ally, Newsom is on a Trump Doesn’t Matter And He’s Wrong About Everything World Tour. While the wardrobe department struggles to fit all that on the back of a jacket, let’s look into what exactly the governor signed as he posed for pictures. The photos were staged to look like heads of state concluding an historic agreement, something like a strategic arms limitation treaty or a pact to end a war. The flags of the UK, the U.S. and California were displayed side-by-side. Documents in regal red covers were presented for signing.  There’s no business like show business. The reality was more mundane. Gov. Newsom and UK energy secretary Ed Miliband signed a Memorandum of Understanding. It doesn’t commit anybody to anything. “This Memorandum of Understanding is a voluntary initiative,” Section VI states, “It does not create any legally binding rights or obligations and creates no legally cognizable or enforceable rights or remedies, legal or equitable, in any forum whatsoever.” What does it do?  It states some “objectives” and some “areas of cooperation.” It establishes an “understanding” that “the Participants intend to continue to address climate change” and “promote responsible innovation.” They will do this through the “specific activities” spelled out in Section IV, including “policy dialogues,” “symposia,” “workshops,” “exhibitions” and “industry learning visits.” In other words, hot air. But there was another announcement from Newsom’s London trip. A British company called Octopus Energy has agreed to invest $1 billion in California green energy enterprises. Octopus Energy is in the business of connecting up “smart” devices in the homes of utility customers and managing their electricity use remotely. Americans have not been big fans of having distant companies monitoring their activity remotely. That’s what the makers of Ring doorbell cameras discovered after they bought a Super Bowl ad to show off the devices’ neighborhood surveillance function.  The CEO of Octopus Energy US said the Memorandum of Understanding “opens up opportunities to bring our smart technology to California, cutting energy bills and improving the customer experience.” He noted that the company is already working with Southern California Edison, “where the Octopus Shift app enables EVs and home batteries to support the grid and give customers more control over when and how they use energy.” Cutting energy bills and having more control sounds great. But exactly what is this company selling? Last year between August and December, Octopus Energy and Southern California Edison ran a pilot program for up to 1,000 customers. People were paid $125 to connect their electric vehicle and $100 to connect their thermostat. The program’s website explained “How it Works”: “Short time-bound events on hot or high-demand days. You’ll get advance notice when possible.” They turn off your air conditioner and car charger. That’s the “event.” Customers who don’t want to roast in their homes on a hot day or who need their cars charged sooner can override the “event,” but then they don’t get paid. Customers who suffer through it “could earn over $625 this year with your smart devices.” This is called “demand response” or “demand management.” It’s one of the ways the California government is trying to package a declining standard of living as global leadership on climate. Thanks to the blithering idiocy of the state’s energy policy, which has a target of replacing reliable, affordable, continuous sources of electricity with 100% sunshine and breezes by 2045, the government has been looking for ways to persuade people to do without electricity at the times they need it most. A February 3 article in POWER magazine reported Octopus is partnering with “virtual power plant operator Voltus” to market “Flexibility-as-a-Service” in four major U.S. markets, including New York and California. Octopus will “supply Voltus with aggregations of residential consumer devices – smart thermostats, electric vehicles and home batteries – beginning in 2026.” This “residential capacity” will be integrated into Voltus’ virtual power plants, the power will be available to dispatch to somebody else, and this will “help data centers, utilities and grid operators manage accelerating AI-driven load growth,” according to the companies.  This is what Octopus Energy sells. But the announcement from Gov. Newsom wasn’t about what the company is selling. It was about the company investing $1 billion in California. What are they buying, and why? According to a February 17 report in Renewables Now, “Octopus will back two Californian carbon removal companies focused on grassland restoration and reforestation, which have several Big Tech companies lined up as carbon credit offtakers.” The company “will also invest in heat batteries and will acquire a solar and battery project in California, expected to become fully operational by July 2026.” Whatever the merits of these endeavors – carbon credit sales have their critics across the political spectrum – the question is whether there was a political reason that these investments are being made in connection with Gov. Newsom’s visit Related Articles Bianco gets piled on for saying something reasonable on immigration If you can’t make America great again, can you stop making it worse? LA’s dogged defense of ‘mansion’ tax destroys housing supply Gavin Newsom and AOC: Two Democrats, Two Auditions The CBO’s latest report and the choice between reform and disorder “California is the best place in America to invest in a clean economy because we set clear goals and we deliver,” Newsom said. Translated: “We use the threat of penalties to coerce utilities and other companies to meet our climate targets by buying things they otherwise wouldn’t, such as carbon credits and electricity from expensive solar and battery projects.” The Trump administration canceled more than $7.5 billion in federal funding for these types of projects, which is probably why Newsom is looking overseas for investors. But if the governor himself has to look for investors, these may not be good investments unless there’s more to the deal. Watch closely: with the speed of a budget trailer bill, California could require utilities to buy exactly what Octopus Energy sells. That would likely put upward pressure on rates, but they’ll throw you a few dollars when they turn off your electricity. Write [email protected] and follow her on X @Susan_Shelley ...read more read less