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The grid is already in trouble in places where it makes little economic sense to keep it reliable (rural regions, especially California/West Coast). The ex-Tex

by OldHand2018 6y ago

The grid is already in trouble in places where it makes little economic sense to keep it reliable (rural regions, especially California/West Coast). The ex-Texas US grid is reliable because of economic reasons (especially industrial) and the Texas grid is not that reliable for economic reasons! If you leave the interstate system and drive the state and national highways, especially east of the Mississippi River, you'll see industrial facilities all over the place in small towns and cities, etc. They consume a lot of electricity, so it is in the national interest to have a good grid. West of the Mississippi: go read the Bershire Hathaway annual report from a few weeks ago. Warren Buffett spends quite a bit of space writing about how and why they are spending billions on the future of the grid.

mschuster91 6y ago
> The grid is already in trouble in places where it makes little economic sense to keep it reliable This is why regulation is needed and competition on the lowest level of infrastructure a bad idea. In Germany, we have a legal mandate (per §36 EnWG, https://www.gesetze-im-internet.de/enwg_2005/__36.html https://www.gesetze-im-internet.de/enwg_2005/__36.html) for the dominant local utility to provide the core gas and electricity network upon which the customer can choose any utility to provide gas and electricity (with this utility then paying a set rate for using the network to the local utility). Additionally, §11 EnWG (https://www.gesetze-im-internet.de/enwg_2005/__11.html https://www.gesetze-im-internet.de/enwg_2005/__11.html) forces all network-operating utilities to keep their network operation "safe, reliable and free of discrimination" - and the authority BNetzA has the legal power to actually enforce this. Events like the shoddy maintenance that led to a number of wild fires in California or the lack of winterization that led to the Texas debacles in 2011 and 2021 simply would not happen here.
- rhodozelia 6y ago
  Not sure why you are downvoted. Utilities are natural monopolies. It makes sense for one entity to provide the network. The risk is that the monopoly gets fat and lazy, but there are many examples of failures from both approaches. And I also believe Germans would not produce or tolerate the California or Texas debacles.
  - mschuster91 6y ago
    > Not sure why you are downvoted Probably because I'm advocating for government owned or at least heavily regulated infrastructure. > The risk is that the monopoly gets fat and lazy, but there are many examples of failures from both approaches. Agreed (and California is a perfect example)... with a monopoly situation (and in "captive market" situations such as housing where people can't go without the services of the market) regulation agencys need teeth. Basically you want pitbulls, not poodles.

mschuster91 6y ago

> The grid is already in trouble in places where it makes little economic sense to keep it reliable This is why regulation is needed and competition on the lowest level of infrastructure a bad idea. In Germany, we have a legal mandate (per §36 EnWG, https://www.gesetze-im-internet.de/enwg_2005/__36.html https://www.gesetze-im-internet.de/enwg_2005/__36.html) for the dominant local utility to provide the core gas and electricity network upon which the customer can choose any utility to provide gas and electricity (with this utility then paying a set rate for using the network to the local utility). Additionally, §11 EnWG (https://www.gesetze-im-internet.de/enwg_2005/__11.html https://www.gesetze-im-internet.de/enwg_2005/__11.html) forces all network-operating utilities to keep their network operation "safe, reliable and free of discrimination" - and the authority BNetzA has the legal power to actually enforce this. Events like the shoddy maintenance that led to a number of wild fires in California or the lack of winterization that led to the Texas debacles in 2011 and 2021 simply would not happen here.

rhodozelia 6y ago
Not sure why you are downvoted. Utilities are natural monopolies. It makes sense for one entity to provide the network. The risk is that the monopoly gets fat and lazy, but there are many examples of failures from both approaches. And I also believe Germans would not produce or tolerate the California or Texas debacles.
- mschuster91 6y ago
  > Not sure why you are downvoted Probably because I'm advocating for government owned or at least heavily regulated infrastructure. > The risk is that the monopoly gets fat and lazy, but there are many examples of failures from both approaches. Agreed (and California is a perfect example)... with a monopoly situation (and in "captive market" situations such as housing where people can't go without the services of the market) regulation agencys need teeth. Basically you want pitbulls, not poodles.