Stop and think for a second. Would you regard the electricity grid and water system as an abysmal failure or success? If you are lobbying for cable companies in DC, you apparently think they are monumental failures. Michael Powell, former Chairman of the FCC must be dizzy after his trip through the revolving door on his way to heading the national cable lobbying association. From his remarks at their cable show [pdf]:

It is the Internet’s essential nature that fuels a very heated policy debate that the network cannot be left in private hands and should instead be regulated as a public utility, following the example of the interstate highway system, the electric grid and drinking water. The intuitive appeal of this argument is understandable, but the potholes visible through your windshield, the shiver you feel in a cold house after a snowstorm knocks out the power, and the water main breaks along your commute should restrain one from embracing the illusory virtues of public utility regulation.

Pause for a second and think of the last time your water rate went up. Think of what you were paying 10 years ago for water and what you pay now. Compare that to anything you get from a cable company. His point seems to be that because more regulated utilities like water and electricity are not PERFECT, regulation has failed and we should just let the private sector handle that. Well, some communities have privatized their water systems and the results have been disastrous - see a company called American Water in David Cay Johnston's book The Fine Print and also explored here. Let's imagine if electricity was not tightly regulated and the market set the rates. How much would you pay for illumination at night? A refrigerator? Probably 10 times what you do now if that was your only option. Maybe 100 times after a few Minnesota winter nights. Market-based pricing for electricity would at least encourage conservation and efficiency, I'll give it that. Public utility regulation is far from perfect but the alternative is far scarier. There is no "market" for these services over the long term. There is monopoly.

Stop and think for a second. Would you regard the electricity grid and water system as an abysmal failure or success? If you are lobbying for cable companies in DC, you apparently think they are monumental failures. Michael Powell, former Chairman of the FCC must be dizzy after his trip through the revolving door on his way to heading the national cable lobbying association. From his remarks at their cable show [pdf]:

It is the Internet’s essential nature that fuels a very heated policy debate that the network cannot be left in private hands and should instead be regulated as a public utility, following the example of the interstate highway system, the electric grid and drinking water. The intuitive appeal of this argument is understandable, but the potholes visible through your windshield, the shiver you feel in a cold house after a snowstorm knocks out the power, and the water main breaks along your commute should restrain one from embracing the illusory virtues of public utility regulation.

Pause for a second and think of the last time your water rate went up. Think of what you were paying 10 years ago for water and what you pay now. Compare that to anything you get from a cable company. His point seems to be that because more regulated utilities like water and electricity are not PERFECT, regulation has failed and we should just let the private sector handle that. Well, some communities have privatized their water systems and the results have been disastrous - see a company called American Water in David Cay Johnston's book The Fine Print and also explored here. Let's imagine if electricity was not tightly regulated and the market set the rates. How much would you pay for illumination at night? A refrigerator? Probably 10 times what you do now if that was your only option. Maybe 100 times after a few Minnesota winter nights. Market-based pricing for electricity would at least encourage conservation and efficiency, I'll give it that. Public utility regulation is far from perfect but the alternative is far scarier. There is no "market" for these services over the long term. There is monopoly.