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Jason Christian's avatar

Thank you. for the tale of Victor Berger.

Sewer Socialism is an element of infrastructure studies, which if that existed in the Academy would point out that social ownership, including consumer ownership, is the normal structure pretty much everywhere except (1) US Telecoms and (2) US power system.

US Telecoms. Under Reagan and Bush I, Jimmy Carter's trust busting (breaking up Ma Bell) was twisted into an absolute prohibition of regulation of telecoms. Those who love their trivia may remember that the architect at the FCC was the guy who Rush Limbaugh called his favorite economist, a gross pig who enjoyed taking rides up and down the Sacramento River (Sac has many sources of embarrassment;; that Limbaugh gained fame and fortune their first is notable) smoking cigars with Limbaugh. The economist pig coined the term Feminazi, which the famous pig made famous.

US Power System. The US power industry is dominated by Investor Owned Utilities (IOUs) operating under Public Utilities/Public Services Commissions. Maybe because it is so close, I use the Pacific Gas and Electric Company (the regulated utility) and its PG&E Corporation parent, with their revolving doors with the cross-town California Public Utilities Commission, as the archetype of regulatory capture. I have found the smaller Southern California Edison to have a healthier, and better for consumers, relationship with the regulator,

The Los Angeles Department of Water and Power (LADWP) may be one reason why their IOU neighbor is better behaved, I think LADWP is the biggest public power organization in the country. But there are many others. Tennessee Valley Authority and its fleet of rural electric and municipal power partners, and Bonneville Power Admin. New York Power Authority. Sacramento Municipal Utility DIstrict. Modesto Irrigation District. And of course the smallest, our own Plumas Sierra Rural Electric Cooperative, with its rural-broadband-pioneering Plumas Sierra Telecommunications.

European social democracy involves many "investor owned" utilities, traded on the Frankfurt exchanges. Their edge is that control of these companies his held by coalitions of public investors (e.g. pension funds, sovereign wealth funds) who are not in the business of extracting monopoly rents from their customer owners.

There may be opportunities, as we address the climate crisis, to rethink some of the commercial arrangements of our network systems. Not just power grids: our rail system needs major investments as we escape our addiction to rubber wheels.

Infrastructure Socialism. Coming soon to a network near you.

Thanks again for the good read, Eric.

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