09-09-2018, 08:55 AM
As I understand it, HELCO provides a "cost plus" service electric monopoly to those who want access to the grid. Permanent solutions produce zero future maintenance costs, therefore smaller dividends to shareholders.
The best scenario for a corporation allowed to function this way is to create a fragile system of band-aid solutions that require constant and recurrent costs so they get the "plus".
PGV is a good example of HELCO's desired future- one where they hire one contractor to produce the electricity, one to fix and replace power lines, another to trim the trees, etc etc to the point where HELCO is just a billing company.
https://en.wikipedia.org/wiki/Cost-plus_pricing
The best scenario for a corporation allowed to function this way is to create a fragile system of band-aid solutions that require constant and recurrent costs so they get the "plus".
PGV is a good example of HELCO's desired future- one where they hire one contractor to produce the electricity, one to fix and replace power lines, another to trim the trees, etc etc to the point where HELCO is just a billing company.
https://en.wikipedia.org/wiki/Cost-plus_pricing