The Humble Libertarian

Building a small army to take over the world and... leave everybody alone.


Monday, March 19, 2012

CRONYISM AT ANY SPEED, CALIFORNIA UTILITIES, IN SEARCH OF TAXPAYER WINDFALL, LOBBY FOR HIGH SPEED RAIL

Thus far, federal subsidies for California's High Speed Rail project total $4.2 billion. The cost of the project continues to climb and was last estimated at $98.5 billion. Two CA utility companies are lobbying hard for the project which will result in huge profits.
California’s high-speed rail initiative has its fair share of detractors, but the state’s two largest utility companies—Pacific Gas & Electric Co. (PG&E) and Southern California Edison—are not among them. Both companies stand to make millions, if not billions, providing electricity to the new high-speed rail lines if the controversial project is approved....According to a 2011 analysis prepared for the California High-Speed Rail Management Team, total electricity usage for the proposed rail system would be—“conservatively” speaking—about 8.32 million kilowatt-hours (KWh) per day. That works out to a little over 3 billion KWh per year. According to the California Public Utilities Commission (CPUC), customers of PG&E, Southern Edison California, and San Diego Gas & Electric, the state’s third largest utility, paid an average rate of about 15.2 cents per KWh. At those rates, the total utility bill for the project would amount to about $1.26 million per day, or more than $460 million per year.
Read the rest here
The Washington Free Beacon