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Power grid operators are basically a textbook example of a natural monopoly. In other words, it wouldn’t make sense to have multiple companies running power lin
by janalsncm 3y ago
Power grid operators are basically a textbook example of a natural monopoly. In other words, it wouldn’t make sense to have multiple companies running power lines to houses. This isn’t like a coffee shop where it makes sense for there to be multiple in the same neighborhood competing on price.
- whatshisface 3y agoIt would make sense to have public wires built the same way as roads, and private power companies that I pay to put power into the grid, that compensate for the power I draw out. If the natural monopoly is the wires, so be it, but there's no natural monopoly on solar farms.
- janalsncm 3y agoIf we’re going to have a public road system I don’t see why the grid should be privatized. Why should the grid be run at a profit but roads be run at cost? Is PG&E really doing a much better job as a private company?
- jononor 3y agoThe government can require that the lines must be available for rent to other power providers. Such that consumers can pick provider independently of whom builds or maintain the lines.