It occurs to me that if PG&E were evil, it might decide that it’s cheaper to secretly hire ‘fire vigilantes’ to start fires which PG&E is not responsible for, than to bury the cables.
Typically, as long as the expense is deemed prudent by regulators, utilities are permitted to ‘rate base’ the expense and earn a return on investment. If PG&E think it’s politically possible to increase expenses by $20-30B because there’s a good narrative to offset complaints of rising utility prices, it’s the selfish thing to do. The times that require strict scrutiny for investor-owned utilities is when they jump on the bandwagon of a politically popular spending proposal (wise infrastructure investments comes from experts getting the politicians on board, not politicians getting the experts on board).
It occurs to me that if PG&E were evil, it might decide that it’s cheaper to secretly hire ‘fire vigilantes’ to start fires which PG&E is not responsible for, than to bury the cables.
Typically, as long as the expense is deemed prudent by regulators, utilities are permitted to ‘rate base’ the expense and earn a return on investment. If PG&E think it’s politically possible to increase expenses by $20-30B because there’s a good narrative to offset complaints of rising utility prices, it’s the selfish thing to do. The times that require strict scrutiny for investor-owned utilities is when they jump on the bandwagon of a politically popular spending proposal (wise infrastructure investments comes from experts getting the politicians on board, not politicians getting the experts on board).