Regulated monopoly as a public bargain

The grid powers everything around you. And it is in crisis. We cannot build AI, decarbonize our economy, or deliver affordable electricity if we don’t rebuild. And yet, the largest machine humankind has ever made is a miracle.

For nearly a century, electricity got cheaper every decade and the grid became so reliable that we stopped thinking about it altogether. This machine was not designed; it accumulated through a century and a half of decisions with unforeseen consequences. And now we are demanding that this aging, fragmented system grow faster than it has in generations.

To understand the struggle and opportunity of this moment, we have to understand how the grid came to be. It is an epic story of inventors and electrocutions, of a man who brought power to the masses and then lost everything, of an America that built massive new industries to win wars, of regulatory ambition and regulatory failure, of catastrophic blackouts, and of a trillion-dollar energy transition we are living through right now.

Plug in for the story of the grid. This is the fourth episode of the Stepchange Show where we explore the technologies and systems that have transformed human civilization.

Read the full transcript and research notes.

Presented by Crusoe:

Crusoe is the vertically integrated AI company, with over 3 gigawatts of AI data center infrastructure built. Crusoe Industries manufactures everything from custom server systems to industrial controls — and is opening that capability to customers who want to build data centers faster. Get in touch: crusoe.ai/stepchange

Chapters

(00:00:00) - The Largest Machine (Intro)

(00:03:28) - Dawn of Electricity (1700s–1870s)

(00:14:16) - War of the Currents (1870s–1890s)

(00:42:51) - The Utility Monopoly (1890s–1930s)

(01:20:58) - New Deal & WWII (1930s–1945)

(01:46:34) - Boom & Cracks (1950s–1970s)

(02:14:40) - The Restructuring Era (1970s–2000s)

(02:53:38) - Renewables & Climate (2000s–2020s)

(03:16:32) - AI Demand Shock (2020s+)

(03:42:08) - Affordability Crisis (Today)

(04:00:36) - Reflections & The Future (What’s Next)

The Stepchange Show is a production of Stepchange Ventures. Hosted by Ben Shwab Eidelson and Anay Shah. We would love to hear from you at hi@stepchange.show.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit stepchangeshow.substack.com