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PG&E has a government-granted monopoly to provide its utilities to its coverage region. That makes it indistinguishable from a state-owner enterprise, except th
by baddox 7y ago
PG&E has a government-granted monopoly to provide its utilities to its coverage region. That makes it indistinguishable from a state-owner enterprise, except that there are probably even more people reducing efficiency by extracting value for themselves.
- SamReidHughes 7y agoExtraction of value means increased efficiency is incentivized. Obvious caveats about cutting corners with brush removal but also the shared responsibility of homes built in dangerous places apply.
- baddox 7y agoWhere would that incentive come from? Not from the threat of competitors, because no competitors are allowed to exist. There would perhaps be some slight incentive due to the slight elasticity of demand for electricity (i.e. people can probably reduce their energy usage in response to higher prices), but I imagine that elasticity is quite low indeed. It’s more likely that the more significant incentives would be other things, like, oh, not maintaining equipment and eventually causing wildfires.
- SamReidHughes 7y agoIncreased efficiency increases profits.
- baddox 7y agoIncreasing efficiency requires significant investment, which decreases profits now. And why do that now, when you have no competitors?
- SamReidHughes 7y agoHow do they have shareholders?