Rural Electricity

Jamestown, North Dakota

August 20, 2021

Driving through Wyoming, Eastern Oregon, Idaho, Montana and North Dakota, I have seen electricity distribution lines and wondered how in the heck does it make any sense for a utility to provide electricity to such remote hamlets.

I think it’s due to government and regulation. The federal government back in the day provided cheap financing to expand the distribution system. Utilities as part of their monopoly have an obligation to provide electricity to whomever wants it no matter how far from civilization they live.

At least one place where capitalism I suggest would have resulted in a different outcome. It may have resulted in everyone having access to electricity but those who live in the boonies would pay more (much more?) because of the difficulty and cost of providing them service. Under the current scheme, they don’t pay more for being remote.