Previously, I’ve blogged about Governor Perdue’s statist desire to secure ownership of four dams in the Uwharrie region of North Carolina currently owned by Alcoa. The General Assembly has capitulated and passed legislation, providing Perdue with a means to acquire ownership of the dams. The legislation, HB972, creates the Uwharrie Regional Resources Commission which has all of the necessary powers to acquire the dams vested in it.
Per the News & Observer, a meeting of individuals desiring that the state acquire the dams has been planned for this week. The report does not indicate who exactly will be in attendance but does note that Alcoa will not have a representative present because the company “doesn’t think the discussion will be balanced.” That is a safe bet. The meeting indicates that the Perdue Administration intends to move forward with its attempt to acquire Alcoa’s property. Simply put, Governor Perdue would prefer the state own the dams and produce hydroelectric energy than for Alcoa to own the dams and produce hydroelectric energy – both entities would produce energy for retail use. Nevermind that the state cannot afford to purchase the dams anyway. Alcoa provides the same public good that the state would provide if it owned the dams, so for what purpose does Perdue want state ownership? Because she believes in a more powerful centralized state and in the state over the private sector. That is statism.
Alcoa damn gift was worst incentives project ever.
The true issue here is the government licensing. Without the government, Alcoa would be forced to operate the dams effectively. If they didn’t then there would be a strong incentive for another investor (possible the State) to buy out the dams. Competition solves everything.
Jason, I ride by FERC every morning on the Metro. I’ll go in an talk some sense into them for you.