Suburban Station wrote:actually, I believe it was part of movement to break up big businesses that were, at the time, monopolies. I don't buy the "imagine my rates going up" since there can be some synergy between the two much the way large users can contract predictable amounts of energy.
I think, all though I do not know for certain, that you are correct. There were not a whole lot of buses needing tires in 1930 or prior. Actually, I always thought that power companies began developing transit lines throughout the country so that they would have customers to sell the electricity instead of waiting for homes and businesses to upgrade to electric power.
Unfortunately, power companies are able to sell the power generated without having to develop transit customers so the likelihood of them wanting to setup a subsidiary would be small. But then again, maybe you could get a manufacturer and electricity company to setup a company to develop rail lines in partnership with governments ( which would help lower the construction costs). Then have the new transit company buy equipment from the manufacturer and electricity from the power company. The transit company would operate at a loss and the parent companies could use the loss as a write off. Or maybe not.
In all seriousness though, I do wish municipal owned power systems were used more often to defer the operating costs of transit systems. I know the City of Ann Arbor owns a few dams that produce a few hundred thousand dollars worth of electricity a year. It would be nice if that could be used by transit knocking down transit's carbon foot print even more.