That isn't an incentive, that is just greed. And not actual "make the most money" greed, but stupid greed where that is the choice that they would make if they don't think at all and nobody points out the obvious to them.
Making a long-term investment to squeeze it for unsustainable short term profits is genuinely stupid. There is no incentive to do that. They would make more money milking the grid for long-term profits.
Making a long-term investment to squeeze it for unsustainable short term profits is genuinely stupid.
If you've got a better name for it I'm all ears. But PG&E has been neglecting their infrastructure at least since the early 90s when their lackadaisical approach to clearing brush led to the Sierra Fire in '94.
Keep in mind that PG&E's record keeping was so lax that they blew up a neighborhood in San Bruno after increasing the pressure on a gas pipeline without knowing if the line could support such pressure. Apparently PG&E also got sued a couple years ago by shareholders alleging gross mismanagement and demanding safety reforms. I'd say there's plenty of stupid and greed at PG&E to go around.
> If you've got a better name for it I'm all ears.
'Incompetence' would be the normal choice. And standard run-of-the mill incompetence has nothing to do with profit motives or incentives.
You can get incompetence with any governance structure; it isn't related to profit motives. If they are being sued by their own shareholders that is quite solid evidence that it isn't capitalist incentives that are the problem.
Sure there is: short-term profit.