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The wildfires--and the climate crisis that's making them worse--are public problems. The reliability of our power grid is a public need. (Photo: Shutterstock)
We Need Publicly Owned Utilities
California’s wildfires and blackouts show the dangers of entrusting our power to for-profit corporations.
Oct 30, 2019
Right now, thousands of Californians are fleeing raging wildfires, while millions sit in the dark. And for-profit utilities may be to blame.
Pacific Gas & Electric--a private, for-profit utility in the state--has admitted that its equipment likely caused 10 wildfires this year alone. To avoid further damage, the utility has been shutting off its customers' power when weather conditions cause increased fire danger.
Will this lower the risk of wildfires? Maybe. It will also leave blacked out hospitals choosing whether to refrigerate their vaccines or keep their medical records online.
As Vox environmental reporter David Roberts put it, giving customers a choice between blackouts or fires is a failure.
A popular theory says that businesses must be "efficient" in order to survive in a competitive marketplace. By contrast, the government--without such market pressure--is naturally "inefficient."
But even in the best cases, for-profit utilities with state-sanctioned monopolies are not functioning in a competitive marketplace. And unlike public utilities, which simply have to cover the costs of operating, privatized utilities must generate something else: profits.
As long as private, for-profit corporations provide our power, cleaner solutions like rooftop solar will remain out of reach to many.
How do they do this? By cutting costs--including employee salaries and benefits, customer services, and equipment upgrades. In the case of PG&E, it's meant failing to upgrade and maintain their aging infrastructure.
It would be one thing if PG&E's grid used all of the latest, most up-to-date technology. But that's not the case. Instead of making their grid more resilient, now they simply shut it off when the weather gets bad -- and it may still be causing fires.
And if customers don't like that, too bad. It's a monopoly.
Prices and service aren't the only things at stake. We also need to get power from sources that are reliable, safe, and environmentally clean.
A corporation with a profit incentive, which needs to provide shareholders with growth each quarter, may not invest in that. Upgrading and maintaining infrastructure cuts into profits, giving them a reason to sacrifice safety and eco-friendliness to cut costs.
Imagine a circumstance in which most consumers and businesses get their power from clean, rooftop solar panels.
Sounds great, but there's a big problem for for-profit utilities: After the initial manufacturing and installation, there's no profit in people getting their power from the sun.
It's clean, it's technologically sound, and yet it's not available to most people. As long as private, for-profit corporations provide our power, cleaner solutions like rooftop solar will remain out of reach to many.
But what if we had publicly owned utilities?
The wildfires--and the climate crisis that's making them worse--are public problems. The reliability of our power grid is a public need.
When we privatize our utilities, we limit the solutions we can choose from to those that are profitable to a corporation. We risk situations like the one we are in now, in which the public is suffering the consequences of decisions a private entity made to maximize its own profits.
The public interest, not private profit, should be priority No. 1. If there's a silver lining to this mess with PG&E, it's that more people will demand that.
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |
This column was distributed by OtherWords.
Jill Richardson
Jill Richardson is pursuing a PhD in sociology at UW-Madison, where she studies natural resources and the environment.
Right now, thousands of Californians are fleeing raging wildfires, while millions sit in the dark. And for-profit utilities may be to blame.
Pacific Gas & Electric--a private, for-profit utility in the state--has admitted that its equipment likely caused 10 wildfires this year alone. To avoid further damage, the utility has been shutting off its customers' power when weather conditions cause increased fire danger.
Will this lower the risk of wildfires? Maybe. It will also leave blacked out hospitals choosing whether to refrigerate their vaccines or keep their medical records online.
As Vox environmental reporter David Roberts put it, giving customers a choice between blackouts or fires is a failure.
A popular theory says that businesses must be "efficient" in order to survive in a competitive marketplace. By contrast, the government--without such market pressure--is naturally "inefficient."
But even in the best cases, for-profit utilities with state-sanctioned monopolies are not functioning in a competitive marketplace. And unlike public utilities, which simply have to cover the costs of operating, privatized utilities must generate something else: profits.
As long as private, for-profit corporations provide our power, cleaner solutions like rooftop solar will remain out of reach to many.
How do they do this? By cutting costs--including employee salaries and benefits, customer services, and equipment upgrades. In the case of PG&E, it's meant failing to upgrade and maintain their aging infrastructure.
It would be one thing if PG&E's grid used all of the latest, most up-to-date technology. But that's not the case. Instead of making their grid more resilient, now they simply shut it off when the weather gets bad -- and it may still be causing fires.
And if customers don't like that, too bad. It's a monopoly.
Prices and service aren't the only things at stake. We also need to get power from sources that are reliable, safe, and environmentally clean.
A corporation with a profit incentive, which needs to provide shareholders with growth each quarter, may not invest in that. Upgrading and maintaining infrastructure cuts into profits, giving them a reason to sacrifice safety and eco-friendliness to cut costs.
Imagine a circumstance in which most consumers and businesses get their power from clean, rooftop solar panels.
Sounds great, but there's a big problem for for-profit utilities: After the initial manufacturing and installation, there's no profit in people getting their power from the sun.
It's clean, it's technologically sound, and yet it's not available to most people. As long as private, for-profit corporations provide our power, cleaner solutions like rooftop solar will remain out of reach to many.
But what if we had publicly owned utilities?
The wildfires--and the climate crisis that's making them worse--are public problems. The reliability of our power grid is a public need.
When we privatize our utilities, we limit the solutions we can choose from to those that are profitable to a corporation. We risk situations like the one we are in now, in which the public is suffering the consequences of decisions a private entity made to maximize its own profits.
The public interest, not private profit, should be priority No. 1. If there's a silver lining to this mess with PG&E, it's that more people will demand that.
Jill Richardson
Jill Richardson is pursuing a PhD in sociology at UW-Madison, where she studies natural resources and the environment.
Right now, thousands of Californians are fleeing raging wildfires, while millions sit in the dark. And for-profit utilities may be to blame.
Pacific Gas & Electric--a private, for-profit utility in the state--has admitted that its equipment likely caused 10 wildfires this year alone. To avoid further damage, the utility has been shutting off its customers' power when weather conditions cause increased fire danger.
Will this lower the risk of wildfires? Maybe. It will also leave blacked out hospitals choosing whether to refrigerate their vaccines or keep their medical records online.
As Vox environmental reporter David Roberts put it, giving customers a choice between blackouts or fires is a failure.
A popular theory says that businesses must be "efficient" in order to survive in a competitive marketplace. By contrast, the government--without such market pressure--is naturally "inefficient."
But even in the best cases, for-profit utilities with state-sanctioned monopolies are not functioning in a competitive marketplace. And unlike public utilities, which simply have to cover the costs of operating, privatized utilities must generate something else: profits.
As long as private, for-profit corporations provide our power, cleaner solutions like rooftop solar will remain out of reach to many.
How do they do this? By cutting costs--including employee salaries and benefits, customer services, and equipment upgrades. In the case of PG&E, it's meant failing to upgrade and maintain their aging infrastructure.
It would be one thing if PG&E's grid used all of the latest, most up-to-date technology. But that's not the case. Instead of making their grid more resilient, now they simply shut it off when the weather gets bad -- and it may still be causing fires.
And if customers don't like that, too bad. It's a monopoly.
Prices and service aren't the only things at stake. We also need to get power from sources that are reliable, safe, and environmentally clean.
A corporation with a profit incentive, which needs to provide shareholders with growth each quarter, may not invest in that. Upgrading and maintaining infrastructure cuts into profits, giving them a reason to sacrifice safety and eco-friendliness to cut costs.
Imagine a circumstance in which most consumers and businesses get their power from clean, rooftop solar panels.
Sounds great, but there's a big problem for for-profit utilities: After the initial manufacturing and installation, there's no profit in people getting their power from the sun.
It's clean, it's technologically sound, and yet it's not available to most people. As long as private, for-profit corporations provide our power, cleaner solutions like rooftop solar will remain out of reach to many.
But what if we had publicly owned utilities?
The wildfires--and the climate crisis that's making them worse--are public problems. The reliability of our power grid is a public need.
When we privatize our utilities, we limit the solutions we can choose from to those that are profitable to a corporation. We risk situations like the one we are in now, in which the public is suffering the consequences of decisions a private entity made to maximize its own profits.
The public interest, not private profit, should be priority No. 1. If there's a silver lining to this mess with PG&E, it's that more people will demand that.
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