Buying Power Transmission Lines

* Most discussions of a state takeover of the high-voltage transmission system have missed the key issue. Transmission, unlike generation of electricity, is a natural monopoly. Therefore it has to be carefully regulated, which introduces many problems, or centrally owned by a nonprofit entity.

The current system of ownership has led to underbuilding of the transmission system because the utilities don’t think regulators will allow them to earn enough money on new investments to overcome the difficulties of getting new lines built. It has also led to inefficient operation of the existing transmission system. Government ownership is likely to improve performance of the system. The electricity transmission lines should be owned and operated by the state just as our aquifers and highways are.

ROGER BOHN

Associate Prof. of Management

UC San Diego

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The state (Gov. Gray Davis) does not want to call this a bailout. The state is going to buy the utility company’s transmission lines, give them back, pay the utility companies to operate them and allow the companies to continue renting and leasing the transmission lines, collecting tens of millions of dollars. Perhaps the state is going to pay billions of dollars of our money just to purchase the obsolete hardware?

Hey, I have a deal for you, Gov. Davis. I have a car on which I’m two months behind in payments. How about the state buying my vehicle for much more than it is worth? I will pay off my creditor. You will pay me to operate my vehicle and, as the state owns the car, when your car breaks down, you will repair it. The extra moneys above the value of my car I will send to my rich uncle out of state.

CLIFFORD DUNBAR

Bell Gardens

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When Davis buys the extension cord, where will he plug it in?

JACK BAILEY

Studio City