How Free Electricity Helped Dig $9B Hole in Puerto Rico

http://www.nytimes.com/2016/02/02/business/dealbook/puerto-rico-power-authoritys-debt-is-rooted-in-free-electricity.html?action=click&pgtype=Homepage&version=Moth-Visible&moduleDetail=inside-nyt-region-5&module=inside-nyt-region&region=inside-nyt-region&WT.nav=inside-nyt-region&_r=0

by neffy • 10 years ago

2 2 10 years ago

nytimes.com

neffy• 10 years ago

How to make Economists cry.

brudgers• 10 years ago

The author does not show evidence that the debt of the electrical utility is more likely due to policies of free electricity than management decisions to forgo investment in wind and solar energy during a period of high fuel prices. In addition, the author implies that the provision of free electricity to municipalities is a form of corruption but does not provide a case for a belief that the practice is an important cause of corruption.

Indeed, the implication that the practice is corrupt is premised on a limited view of the relationship between public utilities and the public good...e.g. that the tax breaks public utilities pay ought not to be at the expense of providing electricity to public institutions.

Most disturbing is the idea that a publicly owned indoor ice rink is an environmental outrage worthy of castigation by Puerto Rico's betters. A few miles north, Miami and Tampa have publicly funded hockey stadiums for professional ice hockey teams. Their special effects go well beyond disco balls. Closer to home, Rockefeller center runs an outdoor ice rink: this week's high 59, low 33.

How Free Electricity Helped Dig $9B Hole in Puerto Rico

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