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Do those problems exist as much if the excess was forced into them investing into a certain type of power generation? It seems less "heavy handed", since it's a

by nomel 22d ago

Do those problems exist as much if the excess was forced into them investing into a certain type of power generation? It seems less "heavy handed", since it's a proper investment for them. I enjoy a particularly nasty utility monopoly where I am, in a dark blue state, where there is exactly zero political interest in breaking any monopolies. Any competition would probably have to be forced at a federal level. I think less bribing of politicians would happen if you tried to make them do something they were basically already going to do. [1] https://www.forbes.com/sites/energyinnovation/2026/03/22/utilities-pocket-244-billion-profit-as-energy-affordability-crisis-hits-americans/ https://www.forbes.com/sites/energyinnovation/2026/03/22/uti...

AnthonyMouse 22d ago
> Do those problems exist as much if the excess was forced into them investing into a certain type of power generation? The premise of "excess" already has the problem baked into it. Suppose an efficient company could provide service for $100 with a $10 profit, but regulators have no practical way of establishing this. The incumbent is instead providing service for $200 with a $10 profit, but then receiving $30 in kickbacks under the table or something of equivalent value not being accounted for in the official books from whoever is now getting $190 instead of $90. Whereas getting them to invest in a particular type of generation was never hard because you can just give them a financial incentive to do it. If they have to pay a carbon tax out of their profits, which generation types are they going to add?
- nomel 21d ago
  > If they have to pay a carbon tax out of their profits, which generation types are they going to add? I see. Thanks for understand! How do you motivate them to actually add capacity? With a monopoly, it seems that adding supply for something people have to use could just reduce rates/profits.

by nomel 22d ago

AnthonyMouse 22d ago

> Do those problems exist as much if the excess was forced into them investing into a certain type of power generation? The premise of "excess" already has the problem baked into it. Suppose an efficient company could provide service for $100 with a $10 profit, but regulators have no practical way of establishing this. The incumbent is instead providing service for $200 with a $10 profit, but then receiving $30 in kickbacks under the table or something of equivalent value not being accounted for in the official books from whoever is now getting $190 instead of $90. Whereas getting them to invest in a particular type of generation was never hard because you can just give them a financial incentive to do it. If they have to pay a carbon tax out of their profits, which generation types are they going to add?

nomel 21d ago
> If they have to pay a carbon tax out of their profits, which generation types are they going to add? I see. Thanks for understand! How do you motivate them to actually add capacity? With a monopoly, it seems that adding supply for something people have to use could just reduce rates/profits.