You'll say that until the company is full of public service workers who dont care and electricity costs 3x as much. Pretty much every developed country has privatized electricity generation to keep prices down.
For example, Santa Clara runs their own public utility[2]. The average resident pays about 10.4 cents per KWh. That's about 30 percent less than rates PG&E charges.
Also, their energy is greener and their infrastructure is better maintained.
The problem with for profit utilities is that they are incentivized to keep things as lean as possible. They neglect maintenance of their infrastructure and use that money for bonuses and dividends. You can see that played out here [1].
[1] https://www.sfgate.com/bayarea/article/PG-E-diverted-safety-...
They aren't incentivised to be excessively lean. The incentive structure for someone who has spent a fortune on expensive capital investment is to maintain it.
There is no point incentive to build a vast system of poles and wires then letting it degrade over time.
Anyway, it won't be capitalist incentives at work; it will be something in the details of the regulations. In Australia, due to poor market regulations, we have the opposite problem where our utilities spend far too much on grid maintenance.
Sure there is: short-term profit.
Making a long-term investment to squeeze it for unsustainable short term profits is genuinely stupid. There is no incentive to do that. They would make more money milking the grid for long-term profits.
If you've got a better name for it I'm all ears. But PG&E has been neglecting their infrastructure at least since the early 90s when their lackadaisical approach to clearing brush led to the Sierra Fire in '94.
Keep in mind that PG&E's record keeping was so lax that they blew up a neighborhood in San Bruno after increasing the pressure on a gas pipeline without knowing if the line could support such pressure. Apparently PG&E also got sued a couple years ago by shareholders alleging gross mismanagement and demanding safety reforms. I'd say there's plenty of stupid and greed at PG&E to go around.
'Incompetence' would be the normal choice. And standard run-of-the mill incompetence has nothing to do with profit motives or incentives.
You can get incompetence with any governance structure; it isn't related to profit motives. If they are being sued by their own shareholders that is quite solid evidence that it isn't capitalist incentives that are the problem.
Generally the costs are lower and service levels higher than privately-held corporations.
Granted, most munis don't have to deal with long-distance distribution, though there are four federal power administrations which do, the Bonneville, Southeastern, Southwestern, and Western Area Power Administrations. Also the Tennessee Valley Authority.
That really seems to be the only thing that matters here, given that the issue is about the liabilities fires due to lack of line maintenance in forested areas.
[0] https://www.consumerwatchdog.org/blog/private-insurance-vs-m...