History & economics shred this fantasy of a government-run energy utopia in Rhode Island.

Representative Megan Cotter’s push for a state-owned utility in Rhode Island is a textbook case of government overreach masquerading as a solution to high energy prices. The free market, not bureaucratic meddling, is the proven mechanism for delivering efficiency, innovation, and value to consumers.

Let’s start with the cold reality: publicly owned utilities sound noble until you peel back the curtain. Cotter touts Nebraska’s system as a shining example, but cherry-picking a coal-and-gas-powered outlier ignores the context. Nebraska’s low rates stem from its access to cheap fossil fuels and a sparse, rural population—hardly a blueprint for Rhode Island, a small, densely populated state in a supply-constrained region. Rhode Island Energy’s spokesperson nailed it: managing a grid takes expertise and capital, not wishful thinking. The private sector has honed this for over a century; the state has no track record to suggest it could do better.

Cotter’s disdain for shareholders exposes her fundamental misunderstanding of how markets work. Shareholders aren’t the enemy—they’re the engine. Private utilities answer to investors who demand efficiency and innovation to protect their capital. Remove that incentive, and you’re left with a government monopoly accountable to no one but politicians. Publicly owned systems often bloat with inefficiency—look at the U.S. Postal Service or Amtrak, perennial money pits propped up by taxpayers. Rhode Island Energy’s $888 million in earnings isn’t a scandal; it’s a sign of a company navigating a tough market while keeping the lights on. Contrast that with government projects, notorious for cost overruns and delays.

The price disparity Cotter highlights—28.7 cents per kWh in Rhode Island versus 12.3 cents in Nebraska—conveniently dodges the real culprits: geography, regulation, and policy. New England’s energy costs are spiked by a lack of pipelines, overreliance on imported fuel, and aggressive green mandates—all issues the General Assembly could address without seizing the grid. Instead, Cotter wants to slap a Band-Aid on a broken system by copying a model that doesn’t fit. And her profit-cap bill? A blatant attack on property rights that would scare off investment, hiking costs long-term as capital dries up.

Microgrids might sound sexy, but they’re no panacea. Localized power can supplement a grid, but scaling them statewide demands billions in upfront costs—money Rhode Island doesn’t have without jacking up taxes or debt. Private firms are already experimenting with microgrids where they make sense; they don’t need a government middleman to muck it up. Cotter’s rejection of eminent domain is a hollow gesture—building a parallel state system still means competing with a private utility that’s already paid for its infrastructure. Good luck selling that to ratepayers footing the bill.

Then there’s the jobs angle. Rhode Island Energy employs 1,400 people and funds community programs. A state takeover risks slashing those jobs and hollowing out local economies—all for an “unproven alternative,” as Garcia aptly put it. Cotter’s “people first” rhetoric rings hollow when her plan could kneecap workers and nonprofits.

The free market isn’t perfect, but it beats government micromanagement every time. High energy prices hurt, no question. But the fix lies in unleashing competition—streamline regulations, incentivize new entrants, expand supply—not handing the keys to a complex industry to a 15-member commission with a deadline and a dream. Cotter claims the middle class is eroding. She’s right—but saddling them with a wasteful, state-run utility isn’t the lifeline she thinks it is. It’s a lead weight.

– Author wishes to remain anonymous