Should the cap on utility profits be adjusted down from an industry average of 9.7% to the 4% being proposed by some to help with utility bills? Franchise areas where roi is based on dollars invested in infrastructure so it encourages more investment in infrastructure when returns are higher when I ran engineering and maintenance department for a private water and sewer company, we had a list of capital projects to spend money on in last quarter every year if we were anticipated to exceed our max allowable ROI. like gubmnt agencies trying to spend budgets so they don't get cut. ROI needs to be better than bonds but nearly 10% on almost guaranteed returns seems excessive to a captive audience. Squeezed by Trump, blue states try squeezing utilities in return Utility executives are pushing back on the efforts to limit their profits, arguing the moves could dampen investment in the power grid and ultimately drive rates up further. "It hurts our credit worthiness," said Southern California Edison President and CEO Steve Powell. "Our costs go up. And then ultimately, customers end up paying for that." Cotter introduced a bill in January to cap utilities' "return on equity" — a key financial metric for utility companies that determines how much shareholders can earn on their investments — at 4 percent, far below the industry's 2024 average of 9.7 percent. Proposals in New York, California and New Jersey would similarly limit utility profits. New York Sen. James Skoufis' February proposalwould impose a 4 percent cap, like Cotter's, while New Jersey Assemblymember Eliana Pintor Marin introduced one last month emphasizing that utilities should receive the “lowest reasonable return.”
Our water authority just raised rates 15% starting this month. That headline was bad enough, but deviously they shrunk the pricing tiers meaning that you get to the next pricing tier 20% faster so the effective rate for most households will increase more than their already high 15% increase.
i can say that water and sewer are traditionally woefully underfunded in most areas, especially older areas. do you pay more for water/sewer or your monthly cable/net access or family phone bill? For me, i have around $180 wrapped up in cable and tv and another $200 in 5 phone lines and water/sewer is around $100. water/sewer is most reliable service I have anywhere
The Florida GOP has blocked FEC investigations as well as admitted to devising a plan to run a ghost candidate to defeat someone who was against FPL. Despite all of that people don't care
These are monopolies with special protections. No other company is allowed to come in and get them competition. They're not the same as traditional private companies
I’m on a septic system so my costs are relatively low as sewer is the greater of the two costs. I don’t feel they’re underfunded. Freshwater is plentiful and easy to access here. They just built a massive new headquarters that looks like a building from Gattaca. Probably where a lot of the money is going.
Great. What’s your recourse if they double your power or water pricing? What competitor can you switch to? This isn’t Firehouse vs. Jimmy John’s vs Jersey Mikes vs Subway. This is you’ll pay it and you’ll like it.
I guess the customer pays for the hurricane repairs on top of their 10% profit? I know the fuel surcharge moves up and down based on the price of oil. If the utility provides life essential services reliably shouldn't they get a 10% tip?
I’m less bothered by a 10% profit as I am by the fact they get made whole when they are the ones at fault instead of it coming out of their profit. PGE simply jacked their rates up in the wake of their liabilities.
Especially since in states like Florida insurance companies are limited to 4.5% margins with arguably much more risk (though there are ways around that) and no monopoly.
again I said private companies - the water companies are usually owned by the municipalities - the electric companies have a monopoly I went off the grid so all I pay the electric company is for the rental of the meter - I am on a septic tank so I do not pay the sewer costs
lots of water and sewer are private, especially as munis continue to privatize because they can't afford the capital improvements needed and then they blame the evil privateer for raising the rates to cover it...and rates do get raised more than the cover but hey, it gets done, and the politician doesn't get blamed, just honoring the contract the last losers set up....could write a playbook for it
We had Clay electric when we lived in town of tioga, in newberry. At the end of the year, after paying their costs to operate, they sent us a check for what was left over. I guess all customers received one? Strangely, we received a check for 2 years after we moved. I called and they said it was legit. I didn’t argue, just hung up and cashed the check. Wasn’t a lot (less than 50) but enough for a nice lunch out with the wife.
