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Another important factor is that highly regulated local monopolies like power companies may have certain restrictions like only being able to charge a certain %
by Consultant32452 5y ago
Another important factor is that highly regulated local monopolies like power companies may have certain restrictions like only being able to charge a certain % over cost. Well, you'd much rather have 5% of a large number than a small number, so you're incentivized to do the more expensive long term thing.
- QuercusMax 5y agoHealth insurance has been doing this too.
- lazide 5y agoIt definitely explains a lot of what PG&E has done sometimes - maximum inefficiency and cost in some areas, incredibly (long term destructive) cheap in others.