The problem is that the government decided that utilities were going to end up as a natural monopoly, and then guaranteed that outcome by granting legal monopol

The problem is that the government decided that utilities were going to end up as a natural monopoly, and then guaranteed that outcome by granting legal monopolies to utilities. Whether or not monopolies would have actually developed had the government stayed out of it is something we may never know. At the moment we have the worst of both worlds -- monopolies that gained their position because the government wanted them to, not because they emerged as natural monopolies by beating competitors. It's impossible to threaten their business because you need to get government permission to compete with them and you probably won't get it. They have no reason to care if their customers are happy. If the government had built the power lines (or allowed private companies to build them in exchange for selling access to others), and then allowed any number of private companies to generate power and deliver it over those lines, competing for customers on price and quality of service, I think we would be better off. If the natural monopoly theory turned out to be true then action could be taken at that time. I live in one of the few California cities that are allowed to form their own power companies and I'm definitely better off than my friends who have to use PG&E -- I get the same or better service for a lower price.