|Some investors like to buy electric utility stocks for their dividend yield, thinking that their government-mandated monopoly position makes the capital investment “safe.” Nothing could be further from the truth and such investors may finally be realizing they are investing in something like the Titanic as it heads for the iceberg.
Tony Seba in Clean Disruption of Energy and Transportation: How Silicon Valley Will Make Oil, Nuclear, Natural Gas, Coal, Electric Utilities and Conventional Cars Obsolete by 2030 makes an important point:
The conventional landline telephone companies did not die. When the world adopted mobile phones in the early 1990s, most people kept their landlines as a backup. But as the quality of cell phones improved and users got comfortable with them, they unplugged their landline phones. Users who grew up with cell phones never made the acquaintance of the landline. Developing countries that had no landline infrastructure to speak of just leapfrogged to a mobile communications infrastructure.
Most think that grid defection by the vast majority of electric users simply won't happen. But, then, what did they say about landline phone service when cell phones first appeared?