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This has been beaten to death in other threads related to this over the past several weeks, but the short answer to your question is "by putting money toward in

This has been beaten to death in other threads related to this over the past several weeks, but the short answer to your question is "by putting money toward infrastructure upgrades instead of toward paying out dividends".

trhway 7y ago
$1B/year dividends plus stock buybacks - for example $200M/$400M/$800M/$800M in 2018/2017/2016/2015 https://ycharts.com/companies/PCG/stock_buyback https://ycharts.com/companies/PCG/stock_buyback
- testfoobar 7y ago
  You are assuming that a publicly run utility would have the same cost structure as a private corporation - so the dividends that the private entity paid out would be available for further investment. If anything, I would expect a publicly run utility to be less efficient at capital allocation. All "excess" capital may get used up in the inefficiencies instead of investments. Consider the challenges of city-wide transportation networks in providing service, maintaining infrastructure and investing for the future.
  - DiogenesKynikos 7y ago
    Why do you expect a private monopoly to allocate capital more efficiently than a publicly run utility?
    - testfoobar 7y ago
      A private company sends excess capital to shareholders. A public utility is likely to send "excess" capital into politically driven projects. Alternatively, neither private nor publicly run capital is good at discounting the far future.
      - trhway 7y ago
        >A private company sends excess capital to shareholders. A public utility is likely to send "excess" capital into politically driven projects. Sending the capital to maintenance would be a politically driven project right now for public utility. For private company even right now it is still a conflict of interests between maintenance and shareholder interests.
        testfoobar 7y ago
        I'm not saying that a private utility is the best answer. I'm saying that a publicly run utility may not be any better. Consider the following regarding NY, DC & SF subway systems: "How Politics and Bad Decisions Starved New York’s Subways Disruptions and delays have roiled the system this year. But the crisis was long in the making, fueled by a litany of errors, a Times investigation shows." 2017 https://www.nytimes.com/2017/11/18/nyregion/new-york-subway-system-failure-delays.html https://www.nytimes.com/2017/11/18/nyregion/new-york-subway-... "Metro sank into crisis despite decades of warnings Metro’s failure-prone subway — once considered a transportation jewel — is mired in disrepair because the transit agency neglected to heed warnings that its aging equipment and poor safety culture would someday lead to chronic breakdowns and calamities." 2016 https://www.washingtonpost.com/local/trafficandcommuting/metro-sank-into-crisis-despite-decades-of-warnings/2016/04/24/1c4db91c-0736-11e6-a12f-ea5aed7958dc_story.html https://www.washingtonpost.com/local/trafficandcommuting/met... "Past decisions haunt BART as it seeks voter OK for $3.5 billion bond" https://www.sfchronicle.com/bayarea/article/Why-BART-s-future-now-hinges-on-3-5-billion-9198515.php https://www.sfchronicle.com/bayarea/article/Why-BART-s-futur...
      - DiogenesKynikos 7y ago
        Private monopolies like PG&E, which face little to no competition, are not typically known for their efficiency. Such an important public service which naturally tends towards monopoly should either be publicly owned, or it should be subject to extensive regulatory control.
      - fzeroracer 7y ago
        That excess capital being sent to shareholders clearly isn't being reinvested into stopping fires and maintenance. Because then, you know, cutting power might not be necessary? It's amazing we're debating the pros/cons of public vs private utilities while we have an example of an incredibly corrupt private utility that needs to be shutdown and with execs thrown in jail for gross negligence.

trhway 7y ago

$1B/year dividends plus stock buybacks - for example $200M/$400M/$800M/$800M in 2018/2017/2016/2015 https://ycharts.com/companies/PCG/stock_buyback https://ycharts.com/companies/PCG/stock_buyback

testfoobar 7y ago
You are assuming that a publicly run utility would have the same cost structure as a private corporation - so the dividends that the private entity paid out would be available for further investment. If anything, I would expect a publicly run utility to be less efficient at capital allocation. All "excess" capital may get used up in the inefficiencies instead of investments. Consider the challenges of city-wide transportation networks in providing service, maintaining infrastructure and investing for the future.
- DiogenesKynikos 7y ago
  Why do you expect a private monopoly to allocate capital more efficiently than a publicly run utility?
  - testfoobar 7y ago
    A private company sends excess capital to shareholders. A public utility is likely to send "excess" capital into politically driven projects. Alternatively, neither private nor publicly run capital is good at discounting the far future.
    - trhway 7y ago
      >A private company sends excess capital to shareholders. A public utility is likely to send "excess" capital into politically driven projects. Sending the capital to maintenance would be a politically driven project right now for public utility. For private company even right now it is still a conflict of interests between maintenance and shareholder interests.
      - testfoobar 7y ago
        I'm not saying that a private utility is the best answer. I'm saying that a publicly run utility may not be any better. Consider the following regarding NY, DC & SF subway systems: "How Politics and Bad Decisions Starved New York’s Subways Disruptions and delays have roiled the system this year. But the crisis was long in the making, fueled by a litany of errors, a Times investigation shows." 2017 https://www.nytimes.com/2017/11/18/nyregion/new-york-subway-system-failure-delays.html https://www.nytimes.com/2017/11/18/nyregion/new-york-subway-... "Metro sank into crisis despite decades of warnings Metro’s failure-prone subway — once considered a transportation jewel — is mired in disrepair because the transit agency neglected to heed warnings that its aging equipment and poor safety culture would someday lead to chronic breakdowns and calamities." 2016 https://www.washingtonpost.com/local/trafficandcommuting/metro-sank-into-crisis-despite-decades-of-warnings/2016/04/24/1c4db91c-0736-11e6-a12f-ea5aed7958dc_story.html https://www.washingtonpost.com/local/trafficandcommuting/met... "Past decisions haunt BART as it seeks voter OK for $3.5 billion bond" https://www.sfchronicle.com/bayarea/article/Why-BART-s-future-now-hinges-on-3-5-billion-9198515.php https://www.sfchronicle.com/bayarea/article/Why-BART-s-futur...
    - DiogenesKynikos 7y ago
      Private monopolies like PG&E, which face little to no competition, are not typically known for their efficiency. Such an important public service which naturally tends towards monopoly should either be publicly owned, or it should be subject to extensive regulatory control.
    - fzeroracer 7y ago
      That excess capital being sent to shareholders clearly isn't being reinvested into stopping fires and maintenance. Because then, you know, cutting power might not be necessary? It's amazing we're debating the pros/cons of public vs private utilities while we have an example of an incredibly corrupt private utility that needs to be shutdown and with execs thrown in jail for gross negligence.