Making a Mockery

Wednesday, March 08, 2006

The Greed Goes On…

Utah Power is now getting into the act of reaping record profits… Utah power is asking for its biggest rate increase ever. As if the sting of higher heating and gasoline prices isn't bad enough, electricity bills are likely on the rise in Utah. On Tuesday, Utah Power, the state's dominant power provider, is asking the Utah Public Service Commission for a $197 million rate hike to cover substantial investments it made in power generation and distribution systems in its six-state service area to meet growing demand -- especially over the peak summer period. Utah Power is asking for 17% increase to go with its 6.9% increase last April and the 4.4% increase last March for a grand total of 20% since May of 2000. Utah Power states that it will only be a $10 per month increase. Oh if that’s all the increase is going to be then lets do it. I am sure my employer will gladly give me a heft raise to pay for all these new costs of simply living. NOT!!! Utah’s inflation rate has averaged 2.3% since 2000 so an increase of 11.5% might be justified but not 20%. Source: Utah Governor

So why does Utah Power suddenly feel so greedy? I don’t know maybe it’s the examples set by Exxon/Mobile, Questar and others. Or maybe its because they think we need to pay for the new customers service… Utah Power argues that in recent years it has had to provide service annually to an additional 14,000 to 18,000 new customers. So just let me understand this… You need to jack up prices because business is going so well that your business is growing too quickly? Your revenue stream is increasing but the profit margins aren’t there? It sounds like poor business management. Could this be because Warren Buffet’s Berkshire Hathaway will have completed their purchase of Utah Power by the end of the month? Maybe the Oracle of Omaha is making Utah Power seem like the bad guy by being the bastards that bleed more money out of Utah.

Utah Public Service Commission sucks and needs to be replaced by consumers and not corporate puppets.

Pat Bagely's Cartoon Sums it up nicely.

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I'm wondering why we all forget that when there is a new customer, there is also a very large impact fee assessed to the new residence. The new customer will also pay the first one-time connectnig costs, etc. Why does this equate to a increase for existing customers?
Amen brother... I don't know.
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