@SimonMahan It’s the same problem we have with roads. When it’s time to replace them, it’s very expensive. Those costs are making their way into the system now because not enough reserve was being set aside.
@fredstaffordcs@JigarShahDC So that’s not insignificant. Though, I’m fine with investors owning generation. I think the system breaks when the investors own distribution and generation and force you to buy their generation with zero risk.
@TKavulla@xiaowang1984@mattyglesias Municipalization is about to get serious in Tucson, AZ, population of ~600k, for exactly that reason: higher cost of capital is not resulting in a better outcome.
@fredstaffordcs@JigarShahDC It actually does not largely exist in private sector. Some of the largest utilities in the country are public owned and operated. The job is the same either way: manage assets, plan and manage growth. No different than municipal water systems.