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My understanding is that utilities keep a percentage of the cost of capital improvements they make. This is because the utilities’ original arrangement from way
by doctorhandshake 3y ago
My understanding is that utilities keep a percentage of the cost of capital improvements they make. This is because the utilities’ original arrangement from way back when was designed to incentivize the rollout of electricity as fast as possible. To that extent their incentive is actually to undertake the largest and most expensive development projects possible. The issue with distribution infrastructure as I understand it is not a lack of will or incentives on the utilities side but simply the difficulty in acquiring right of way and permitting.
- lenerdenator 3y agoMost of the stuff that could be replaced exists in an easement. I don't have to agree to let my local utility upgrade my infrastructure. Also, any time something "just works" and a business can charge someone to use it, they'll do that instead of actively working to improve the product, particularly if that product is a commodity and they have a monopoly on it. They've also leveraged regulatory capture to make sure that the public utility boards don't put a lot of pressure on them to make needed changes.
- doctorhandshake 3y agoI think the type of improvement you’re talking about falls under the category of ‘reconductoring’, or capacity improvements to existing deployments. That can help, but interconnection and new distribution is, I think, a much bigger piece of what’s needed, and for that, we need to get all over the place.