You've just admitted that [a power utility] has a "low rate of return." If there's one thing the government should never put up money for, it's projects with a low rate of return.
What are you talking about? Really, you're not making any sense. You sound like you're talking about stock investment instead of public-sector infrastructure.
Seriously, by your line of argument, the freeways wouldn't exist. You need to look beyond the near-term immediately quantifiable numbers. A power utility has a low rate of return when properly operated and managed. The only power utilities that get high margins are the ones on the verge of breaking things -- like Enron. That said, the greater return -- beyond just the financials of the utility company itself -- includes things like, you know, people having relatively inexpensive access to electric power. Which is kind of a requirement for anything resembling a modern life and economy.
Enterprises with low rates of financial return, but high rates of overall return in terms of what they enable, are precisely the kinds of things that government should do, precisely because the private sector either won't get involved, or will engineer market conditions that benefit the company while screwing over everyone else. Imagine if every road were a toll road, or if every power company were like Enron. I certainly don't want to live in that world.