> The main disincentive to invest in the grid is the fact that it is a monopoly and like all monopolies the owner's incentives are to slash investment and milk

> The main disincentive to invest in the grid is the fact that it is a monopoly and like all monopolies the owner's incentives are to slash investment and milk the monopoly under ALL circumstances. Quite the opposite, in fact. In most of the PJM states, power generation is deregulated and market-driven, while the grid itself remains a regulated monopoly. Regulated monopolies operate under a fixed rate-of-return. They would much rather spend $6 billion and earn 10%, instead of spending $5 billion and earning 10%. That's what happens when the rate of return is fixed. The more they spend, the more they earn. Consumer groups routinely show up at regulatory commissions and complain that the electric utility is spending too much on upgrading the grid. > Comcast behaves in a similar manner. Comcast is a minimally-regulated monopoly that is not earning a fixed rate of return. The less they spend, the more they earn.