18 August 2008

Lobbying Plus

So what do you do if you want to sell something to a customer who already has a lower-cost supplier? Lower your price? Can't do that and still make money. Knee-cap the competition? Oh yes, that's better.

Read this blog post on how Poseidon Corporation maneuvered and lobbied to get its desal plant (cost of about $800/AF WITH subsidies) approved by trying to block water reclamation (toilet to tap) projects. T2T is cheaper to run for roughly the same capital expense.

I've supported the Poseidon project because I think it's a useful test case (regardless of cost-benefit), but I've also supported water reclamation, since it's cheaper. If Poseidon was unleveling the playing field, I think I'd be a little pissed off.*

Bottom Line: There are many ways to augment the water supply. Torpedoing the competition to get preferential treatment is not one of those ways.

*SD Mayor Sanders is already a little too aggressive in his opposition to reclamation; the blog implies he was compensated for it.

hattip to DW

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