Being taken to the cleaners

We see many examples of the negative effects of monopoly power with little effective oversight, the Equifax debacle just to cite one. Even worse, however, is monopoly power that has captured the regulatory oversight that monitors it. That appears to be the case in Florida with Florida Power and Light (FPL).
A Miami New Times article points out the billions in dollars that FPL gained through rate increases in order to be more prepared for hurricanes was apparently totally ineffective, as 90% of FPL’s customers lost power when Irma hit. That includes areas on the east coast of the state where winds only reached the strength of a Category 1 hurricane. Despite supposedly spending $2 billion to reinforce more than 500 critical power lines and trimming trees near power lines, a major cause of power loss, the damage to the power grid was substantially more extensive than the Category 2 hurricane, Wilma, that struck the state in 2005. Now, obviously, there were differences between the two hurricanes, especially as Irma’s more destructive side hit Florida. But the billions of dollars spent by FPL preparing for a storm just like this does not seem to have had much effect.