4 ms·

Government entities have NO incentive to improve their quality of service from year to year. If they fix it, they get less tax money. If they don't fix it, th

Government entities have NO incentive to improve their quality of service from year to year. If they fix it, they get less tax money. If they don't fix it, they get more money. This over the years becomes a self fulfilling prophecy. Look at all the failed communist states and you will see the same pattern. Remember Venezuela was one of the most educated, wealthiest latin countries at the end of the 90's.

vkou 7y ago
Neither do monopolies, like PG&E. Their profits are guaranteed at 10%, they can raise utility rates as they see fit, to cover expenses (The state has some influence, but it does not exercise it), and the shareholders are not personally liable for any malfeasance by the firm. It's essentially a license to print money, with no incentives to improve. If you don't like their service, there's no competing power provider you can switch to. If you don't like them starting wildfires, you can sue them, and end up paying for your own lawsuit out of your next power bill. If you don't like them deferring maintenance, while paying shareholders dividends, you can... Complain on the internet? At least with a state-owned utility, if you don't like how it's ran, you can always exercise your democratic rights to vote someone in who can fix it. Surely, of the 39.5 million people in California, you may be able to find one politician who knows how to run a business? Or knows how to hire managers that know how to run a business?
- billions 7y ago
  Why not simply cancel their government-mandated monopoly, as was done with the phone line carriers, and let companies like Tesla compete on a per-city basis?
  - ip26 7y ago
    Because that's working out so well with internet providers, with somewhere around half the country having only one choice of provider?
    - billions 7y ago
      Who granted Comcast monopoly over your coaxial cable? Your local government. Luckily free market competition is finding ingenious solutions around it, such as DSL, 5G wireless, and SpaceX's satellite internet.
- nerfhammer 7y ago
  The CPUC (state regulators) control almost everything about what PG&E is allowed to budget and charge. Here's an example: http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M102/K361/102361873.PDF http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M102/K3...
  - billions 7y ago
    Since the state failed at controlling PG&E's budget, why should the state be trusted with further control?
    - nerfhammer 7y ago
      I mean, no? Seems like it's the worst of both worlds.
calithrower 7y ago
> Remember Venezuela was one of the most educated, wealthiest latin countries at the end of the 90's. Then the price of Oil skyrocketed in the '00s, and the USA began destroying and sanctioning the economy to keep those oil rates high. This is the same reason Iran has sanctions, protecting the USA and OPEC.
ip26 7y ago
All I can tell you is that my municipal utility (electric & freshwater/stormwater/wastewater) has been running for decades, and has very competitive costs & high customer satisfaction. Oh, and all our power lines are buried.

vkou 7y ago

Neither do monopolies, like PG&E. Their profits are guaranteed at 10%, they can raise utility rates as they see fit, to cover expenses (The state has some influence, but it does not exercise it), and the shareholders are not personally liable for any malfeasance by the firm. It's essentially a license to print money, with no incentives to improve. If you don't like their service, there's no competing power provider you can switch to. If you don't like them starting wildfires, you can sue them, and end up paying for your own lawsuit out of your next power bill. If you don't like them deferring maintenance, while paying shareholders dividends, you can... Complain on the internet? At least with a state-owned utility, if you don't like how it's ran, you can always exercise your democratic rights to vote someone in who can fix it. Surely, of the 39.5 million people in California, you may be able to find one politician who knows how to run a business? Or knows how to hire managers that know how to run a business?

billions 7y ago
Why not simply cancel their government-mandated monopoly, as was done with the phone line carriers, and let companies like Tesla compete on a per-city basis?
- ip26 7y ago
  Because that's working out so well with internet providers, with somewhere around half the country having only one choice of provider?
  - billions 7y ago
    Who granted Comcast monopoly over your coaxial cable? Your local government. Luckily free market competition is finding ingenious solutions around it, such as DSL, 5G wireless, and SpaceX's satellite internet.
nerfhammer 7y ago
The CPUC (state regulators) control almost everything about what PG&E is allowed to budget and charge. Here's an example: http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M102/K361/102361873.PDF http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M102/K3...
- billions 7y ago
  Since the state failed at controlling PG&E's budget, why should the state be trusted with further control?
  - nerfhammer 7y ago
    I mean, no? Seems like it's the worst of both worlds.

calithrower 7y ago

> Remember Venezuela was one of the most educated, wealthiest latin countries at the end of the 90's. Then the price of Oil skyrocketed in the '00s, and the USA began destroying and sanctioning the economy to keep those oil rates high. This is the same reason Iran has sanctions, protecting the USA and OPEC.

ip26 7y ago

All I can tell you is that my municipal utility (electric & freshwater/stormwater/wastewater) has been running for decades, and has very competitive costs & high customer satisfaction. Oh, and all our power lines are buried.