If the market solves all problems why would the government even need to mandate winterization? Wouldn't smart businesses have done the risk analysis and done the work? Maybe the problem here is that loss of electrical power has a significant external cost that isn't absorbed by the utilities. In other words, the cost of winterization was more than the cost to fix the damage to their equipment but doesn't take into account the cost to everyone else.
Externalities are, in my opinion, one of the primary reasons for market failure.
Externalities are, in my opinion, one of the primary reasons for market failure.