3 ms·

What would happen if the state took ownership of distribution and ran it at $0 profit? Customers could choose any generation service they like. Any downsides?

bmitc 3y ago
Certain political parties hate anything not making a profit, even government services, so the major downside that I see is getting politicians to agree to it. For what it's worth, I agree with you and feel many things should be turned into non-profit government services.
- parineum 3y ago
  > Certain political parties hate anything not making a profit Since we're talking about the one party state of California, I assume you're talking about Democrats.
earthwalker99 3y ago
That's literally communism.
- vineyardmike 3y ago
  Yes. It works in much of the world. Plenty of places have have government run the power companies.... like, for example, the capital city of California, or the largest city in California (LA). And SF, another major city, is looking into having a municipal power company as well. I grew up in a small town on the east coast, and we had a municipal electricity company. Service was better and cheaper. And we got discounts on next month's electricity if the company accidentally ran a profit the prior month. Americans have such a visceral reaction to their own perception of communism they forget that it can work, even in America.
- Paul-Craft 3y ago
  State-run services are not communism. Don't be obtuse.
- djmips 3y ago
  We have state owned electricity company and it's not communism ( very loaded term )
woodrow 3y ago
Urban ratepayers would still be subsidizing the infrastructure upgrades, utility undergrounding, and legal settlements involving wildfires in more rural/wildland areas. Profit notwithstanding, there's a reason why SMUD (Sacramento Municipal Utility District) rates are significantly lower than PG&E: https://www.smud.org/en/Rate-Information/Residential-rates https://www.smud.org/en/Rate-Information/Residential-rates.
refurb 3y ago
Well, profit is about 10%, so peak rates for electricity could drop to $0.63/kWh instead of $0.70/kWh, which is still a ridiculous rate, even in California. And instead of shareholders capitalizing the company, the government would need to use tax payer money. And worst of all, when the state company fucks up, then the politicians would take the blame and might lose votes. #1 and #2 are possible, but #3? Never going to happen in California.

bmitc 3y ago

Certain political parties hate anything not making a profit, even government services, so the major downside that I see is getting politicians to agree to it. For what it's worth, I agree with you and feel many things should be turned into non-profit government services.

parineum 3y ago
> Certain political parties hate anything not making a profit Since we're talking about the one party state of California, I assume you're talking about Democrats.

earthwalker99 3y ago

That's literally communism.

vineyardmike 3y ago
Yes. It works in much of the world. Plenty of places have have government run the power companies.... like, for example, the capital city of California, or the largest city in California (LA). And SF, another major city, is looking into having a municipal power company as well. I grew up in a small town on the east coast, and we had a municipal electricity company. Service was better and cheaper. And we got discounts on next month's electricity if the company accidentally ran a profit the prior month. Americans have such a visceral reaction to their own perception of communism they forget that it can work, even in America.
Paul-Craft 3y ago
State-run services are not communism. Don't be obtuse.
djmips 3y ago
We have state owned electricity company and it's not communism ( very loaded term )

woodrow 3y ago

Urban ratepayers would still be subsidizing the infrastructure upgrades, utility undergrounding, and legal settlements involving wildfires in more rural/wildland areas. Profit notwithstanding, there's a reason why SMUD (Sacramento Municipal Utility District) rates are significantly lower than PG&E: https://www.smud.org/en/Rate-Information/Residential-rates https://www.smud.org/en/Rate-Information/Residential-rates.

refurb 3y ago

Well, profit is about 10%, so peak rates for electricity could drop to $0.63/kWh instead of $0.70/kWh, which is still a ridiculous rate, even in California. And instead of shareholders capitalizing the company, the government would need to use tax payer money. And worst of all, when the state company fucks up, then the politicians would take the blame and might lose votes. #1 and #2 are possible, but #3? Never going to happen in California.