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I think technically CPUC approves at least a subset of expenditures, but yes there's the weird incentive where wasting money can actually increase profits
by Rebelgecko 10mo ago
I think technically CPUC approves at least a subset of expenditures, but yes there's the weird incentive where wasting money can actually increase profits
- aidenn0 10mo agoIf the government has to approve expenditures and profit margins, there seems to be little reason for a private utility to exist?
- danans 10mo agoWithout the private sector utility company, there wouldn't be a mechanism to raise funds from and pay profits to shareholders.
- xboxnolifes 10mo agoSure there would be; raise funds: tax, pay profits: reduce tax / tax breaks. The real differentiator is in the ability to choose who your shareholders are with less scrutiny.
- danans 10mo agoI tend to agree, but that's a collective decision and action problem, which we have difficulty with as a society today.
- dragonwriter 10mo agoThere is very little reason for private utilities to exist in California, especially PG&E (none of them are great, but PG*E is especially bad), which keeps funding lavishly to lobby against expansion of public utility coverage areas, committing homicide, and going bankrupt only to be resurrected in an endless cycle of nonsense.
- refurb 10mo agoAll the CPUC rate setting committee discussion minutes are public. You can look up what is discussed. The regulator gets down to relatively minor capital investments like fence replacement at substations.