Neon Liberalism The Case for Public Electricity (with Ryan C. Smith)
Feb 21, 2026
Ryan C. Smith, economic historian and author on energy policy, makes the case for public ownership of electric utilities. He contrasts private utility failures like PG&E with successful municipal and cooperative models. Topics include natural monopoly economics, wildfire-linked negligence, transmission vs generation, battery storage’s disruptive role, and how to design accountable public power institutions.
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California Wildfires Show Private Utility Failures
- Ryan C. Smith grew up in California witnessing utilities start wildfires from poor maintenance.
- He cites PG&E's repeated failures and the 2000–01 Enron-era blackouts as lived examples that privatized power can catastrophically fail.
Public Power Works In Nebraska And Beyond
- Nebraska's statewide public ownership since 1970 yields the third-lowest U.S. electricity costs and the most reliable grid.
- Ryan uses Nebraska, LA DWP, and rural co-ops as proof public power is proven at scale and can outperform private utilities.
Electric Grids Are Natural Monopolies
- Electricity distribution is a natural monopoly because networks and transmission lines create huge barriers to entry.
- Once a utility like PG&E gains scale it crowds out rivals via cost advantages tied to infrastructure ownership.