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This thread has bifurcated into a discussion about the general feasibility of private rail electrification as it is usually analyzed on one hand; and on the other hand, a discussion about the Trains article, which advocates a government nationalization of rail electrification, based on a whole different set of reasons than what normally supports the case for private electrification.  To use a popular term, we could call the Trains proposal the “Public Option.” <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p> The discussion of private electrification is academic at this point, because the private investment threshold has not been met.  The public option, however, is right on the front burner with no impediment unless enough taxpayers protest, and I think that unlikely.  There is no reason to doubt that the public electrification cannot be completed by 2015, windmills, distribution lines, and all.   <o:p></o:p> The concern has been expressed about the government raising taxes on the rail improvement of electrification.  With this hanging over the heads of rail executives, they would be unable to quantify the actual financial risk of the project.  But capital improvements go forward every day, so the specter of tax gouging on the improvements does not seem to be a showstopper. <o:p></o:p> However, with the public option for electrification, there would be plenty to worry about in terms of how much government interference would come with it.  Such interference could not only affect the publicly subsidized electrification improvement, but also, the closely connected private enterprise of the railroads that existed before the electrification.  I suspect that a lot of rail management would be very leery of this possibility.    For example, once rail executives accept grants of taxpayer money, they might get a knock on the door from the "Pay Czar" who wants to reduce their pay because tax payers are offended by a corporation that takes a taxpayer subsidy, but has high-paid executives.
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