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Forcing all costs on to new entrants in a market is generally a bad thing for the market and causes it to not expand fast enough. Also they may just choose to n

Forcing all costs on to new entrants in a market is generally a bad thing for the market and causes it to not expand fast enough. Also they may just choose to not participate in the market at all. I.e they'll bring in a whole lot of natural gas generators, put them in the parking lot and call it good, which is not a good thing long term.

gravypod 3mo ago
Forcing all costs into externalities is also not ideal. Right now, some state's systems, force residential consumers to pay for new infrastructure for new demand while only minimal costs are paid by the new customer.
- blackqueeriroh 3mo ago
  All or minimal costs? You’ve provided two contradicting statements here.
  - gravypod 3mo ago
    When people ask for a commercial service hookup there is usually a charge to bring transformers and service lines to the building. This is a constant cost based on the load. The infrastructure to run the service lines out to a new commercial district are usually borne by the residential rate payers. It's how utility monopolies work in any of the states I've worked in. So, you could think of it like this: New customer: 100k-500k. Existing customers: 5% rate hike or 1M-100M/year in increased payments. Per customer this may be minor but there are many customers. The problem has been we have no system for proactive construction of new generation. Note: up until recently in the US demand has been mostly flat. We have been building significantly more power efficient systems so utilities did not know we would see a massive demand spike. China somehow was able to harden against this and continued to improve infrastructure.
SOLAR_FIELDS 3mo ago
Why would any reasonable governing entity (I understand we live in a world where there are not many of these) allow you to run a bunch of natural gas generators in a parking lot?
- blackqueeriroh 3mo ago
  Probably because there are laws that exist
- mlindner 3mo ago
  Because xAI does? I wasn't making a hypothetical.
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gravypod 3mo ago

Forcing all costs into externalities is also not ideal. Right now, some state's systems, force residential consumers to pay for new infrastructure for new demand while only minimal costs are paid by the new customer.

blackqueeriroh 3mo ago
All or minimal costs? You’ve provided two contradicting statements here.
- gravypod 3mo ago
  When people ask for a commercial service hookup there is usually a charge to bring transformers and service lines to the building. This is a constant cost based on the load. The infrastructure to run the service lines out to a new commercial district are usually borne by the residential rate payers. It's how utility monopolies work in any of the states I've worked in. So, you could think of it like this: New customer: 100k-500k. Existing customers: 5% rate hike or 1M-100M/year in increased payments. Per customer this may be minor but there are many customers. The problem has been we have no system for proactive construction of new generation. Note: up until recently in the US demand has been mostly flat. We have been building significantly more power efficient systems so utilities did not know we would see a massive demand spike. China somehow was able to harden against this and continued to improve infrastructure.

SOLAR_FIELDS 3mo ago

Why would any reasonable governing entity (I understand we live in a world where there are not many of these) allow you to run a bunch of natural gas generators in a parking lot?

blackqueeriroh 3mo ago
Probably because there are laws that exist
mlindner 3mo ago
Because xAI does? I wasn't making a hypothetical.

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