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shawndrost | 1 year ago

+1 to this analysis. Urban ratepayers in CA subsidize rural and fire-prone ratepayers. (Utility rates are a stealth tax. Same story as home insurance.) The fight is ultimately political and not as one-sided as you might think. The broad regulator and politician view is that the subsidies are valid, and if the cities all leave the grid, the subsidies will wind up on the state's balance sheet. Nobody wants to see rural de-electrification. Utilities have a lot of sway with politicians for corrupt and non-corrupt reasons.

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