Take notice of the last sentence that speaks of stakeholders. There, I think, lies the problem.
When CEO's need to show quarterly profits to shareholders, maintaining transmission lines and working towards future power sources becomes a cost that won't make the CEO look good. We have a similar set up in Ontario where aging transmission lines will need replacing because no one would commit to the cost of general maintainence. Because of the size of this province, windmills aren't practical due to the long distances. Yet the powers that be want to go that route.
First off a HUGE thank you for looking that up I was soo annoyed when they announced that on news I didn't even bother looking on their website. And apparently they don't even have rationing On their announcement page

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Instead of me going through your post bit by bit, I will tell it in the short way.
KPLC Does not have competition.
no competition= knowing the market is yours
knowing the market is yours=Knowing that people don't have any other choice therefore getting comfortable.
And what you said was 110% right.
But when a new player comes in KPLC will dissolve faster than sugar in boiling tea.
Good night. Ren