Regulators: Friends and Foes

Thomas Fanning, the CEO of the Southern Company, in his Saturday interview with the Wall Street Journal, was dismissive of gas energy and renewables. He has a strong position. He and his company benefit from state mandated contracts for their nuclear power plant currently under construction using taxpayers dollars. If it comes in on budget it will cost the taxpayers of Georgia $14 billion dollars. To build an equivalent amount of capacity using natural gas would cost $2 billion. So the Georgia taxpayer is on the hook for 7 times the cost.

Of course, the taxpayer had no choice. This deal was made between government and Fanning and the Georgia taxpayer has no opportunity to switch. Nor will the regulators allow a competitor.

This is what government thinks is capitalism.

No wonder Mr. Fanning is so smug.