Only occasionally do I come across a true "smoking gun" about utilities that are happy to be co-opted by (and to co-opt) state governments to do obviously economically inefficient stuff that make them a big return. But Colorado's utility, man: *chef's kiss* -->

The above is authored by a utility employee and is from a hearing exhibit entered into evidence at the Colorado PUC's ( @DORAcolorado) hearing on the utility's (Xcel's) transportation electrification plan.

In short, the Colorado legislature authorized a tax credit for EVs. Good on them. But facing budget pressures, the utility is approached by exec-branch officials to run the rebate program off the books of the state budget -- and the utility says "sure," with a generous vig!

In this scenario, the utility is basically just acting as a loan shark. It costs 42% more (!) to finance these rebates through the utility's authorized cost of capital + corporate income tax (which customers pay through utility regulation) than it does out of the public coffers.

Number crunching on this last point courtesy of a witness named Gene Camp, testifying for the staff of the Colorado Public Utility Commission. (He deserves a medal for going out on a limb to question this kind of deal). His testimony in relevant part:

Very conscientiously, the utility wanted to ensure people didn't claim both the state tax credit *and* its rebate. To do that, the utility asked the CO Dept of Revenue whether it could buddy up with the utility. Of course:

The military-industrial complex is more modest about the ties between government and corporation. Even if you agree with the policy aims here, we should be really weirded out when a private business becomes an adjunct of the state.

It's up to the Colorado PUC to approve or deny this one -- denying it would mean going against their boss in the executive branch. Awwwwwkard, as the kids say.

My original thread about this (before the original source documents above were dropped in open hearing -- they usually would never come to light) here: https://twitter.com/TKavulla/status/1326693797120634881