JoshS1 t1_j1m5168 wrote on December 25, 2022 at 2:58 PM

This is the reality of privatization of infrastructure. Private companies will always make their profit the first priority. Also, if they're able to operate with a 30% year of year profit, how much cheaper would our power be if it was a public utility not focused on profit?

We're continuing to keep handing our country over to corporations and, in turn making the rich richer. Why people don't realize this in the voting both? I'll never know.

TradDadOf3 t1_j1ml3yn wrote on December 25, 2022 at 5:15 PM

This makes absolutely no sense. You think they make more profit by selling less electricity?

JoshS1 t1_j1mt7fu wrote on December 25, 2022 at 6:19 PM

My point is that prices are higher, and yes, at times it's cheaper to keep supply down to increase the price. While PA is better regulated, the beat case study for this is Texas and their absolute runaway energy pricing during high demand. That system provides an incentive to have just enough for 90% of the time, then 10% of the time cashing in on high demand pricing and cutting service to some areas.

It's much more complicated than the way you make it seem as if pricing is fixed at the whole sale level (not your's and my pricing). With your train of thought I can make energy widgets and I can sell them for $10, if I make 100 I earn $1,000 so why should I not make as many as possible? Well, the reason is because if I make 100 I make $1,000 but if i make 50 and demand is high I could make $5,000. So half the labor and supplies costs and x5 revenue. That's how you maximize profit.

Edit: TL;DR energy is a commodity

kellyb1985 t1_j1o3nvr wrote on December 26, 2022 at 12:34 AM

TBH... I would think there's less emphasis on dealing with extreme surges or outliers with private companies. You'd be paying for a lot of capacity and infrastructure you only need once every few years.