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>Why not nationalize them altogether and remove the profit seeking middlemen and just let the state run it? Because profit maximizing organizations are general

>Why not nationalize them altogether and remove the profit seeking middlemen and just let the state run it? Because profit maximizing organizations are generally cheaper for consumers and provide better services than state run enterprises. State run entities are beholden to political rules, not economic ones.

solardev 3y ago
Well, in California, they're kinda in the worst of both worlds right now: not state-run but heavily state-regulated, while still trying to make a profit. It's not really working out. They have the burden of state rules without full state support, and can't utilize normal economic rules because of the state limitations. It's just this weird, uncomfortable no-man's land. Between the wildfires and renewables, their rates went up nearly 2x in the last few years and they still went bankrupt. I think some might argue for full privatization, but does that ever work out with a natural monopoly (the transmission portions at least, not so much with generation)? It's like if Comcast provided electricity. I don't think I'm far left enough to want to nationalize everything as a matter of course -- the state bureaucracy, as you imply, isn't great at staying nimble -- but something as mundane and essential as basic infra? Sure, why not. From an equitable services standpoint, right now they're basically charging everyone (via rates) to pay for the actions for a few (solar homeowners), while shrugging off the wildfire situation with no real accountability. As a state enterprise they'd have to have more transparency and accountability (unless they're the Pentagon), and would be subsidized by the existing taxation structures that are already progressive. Right now, the skyrocketing electricity costs in the state are pretty terrifying to behold (I don't even live there), especially if they want to move everyone to EVs. It's just a mess...

solardev 3y ago

Well, in California, they're kinda in the worst of both worlds right now: not state-run but heavily state-regulated, while still trying to make a profit. It's not really working out. They have the burden of state rules without full state support, and can't utilize normal economic rules because of the state limitations. It's just this weird, uncomfortable no-man's land. Between the wildfires and renewables, their rates went up nearly 2x in the last few years and they still went bankrupt. I think some might argue for full privatization, but does that ever work out with a natural monopoly (the transmission portions at least, not so much with generation)? It's like if Comcast provided electricity. I don't think I'm far left enough to want to nationalize everything as a matter of course -- the state bureaucracy, as you imply, isn't great at staying nimble -- but something as mundane and essential as basic infra? Sure, why not. From an equitable services standpoint, right now they're basically charging everyone (via rates) to pay for the actions for a few (solar homeowners), while shrugging off the wildfire situation with no real accountability. As a state enterprise they'd have to have more transparency and accountability (unless they're the Pentagon), and would be subsidized by the existing taxation structures that are already progressive. Right now, the skyrocketing electricity costs in the state are pretty terrifying to behold (I don't even live there), especially if they want to move everyone to EVs. It's just a mess...