If you require power companies to get all this insurance, you no longer have any reason to regulate them (using the government), as there are no externalities (

If you require power companies to get all this insurance, you no longer have any reason to regulate them (using the government), as there are no externalities (because the company bears the costs of a failure). This might be a good trade-off, as insurers are likely to be more judicious and less political with their inspections and requirements.