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No one has touched on one of the biggest impedements to the economies of electrification in the US, namely property taxes. Electrification significanly raises the real property value and thereby the taxes. For anything less than very heavily used lines any reduced operating costs resulting from the use of electricity will be spent on local property taxes. And this is totally ignoring the interest needed on the loans to pay for the infrastructure, which in a few areas of the US invokes another set of taxes. <br /> <br />There are two notable exceptions to the above. The electrified railroad can be a government or quasi government agency, as Amtrak , SEPTA, NJDOT, and the like. They are generally immune from taxes. This was the case in much of Europe until recently and is still the case in places. The other exception has been utilities who could until recently automatically pass on their costs to the consumers and thus had no real incentive to find the true lowest cost solution.
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