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Utilities vs Free Market
The Sunrise Transmission Project is a perfect example of what's wrong with how utilities are governed, i.e. regulated. Although the PUC is there to protect the people from over zealous utilities we'll find most of their members have come from the very industry they are to regulate, and will return to that industry when they no longer "serve" the public. Does "Don't bite the hand that feeds you." ring a bell?
Utilities have an inherit guarantee of a profit on any of their expenses. If it costs more to run a business, charge more. It's justifiable! Take trips, have lunches, build offices and dig up the street again (after just having done it.) But that pales to the "expense" of building the Sunrise Power Link. And with that type "expense" they can surely justify a major rate increase.
When do we see this as an "investment" and something done with the profits made from the already too high rates? Shouldn't the benefit that SDG&E is claiming be a total justification to their investors to put the money into the project instead of dividends? In a free market it would get done based solely on the benefits and future profit to be gained. If the public is charged for the creation of this type asset they should be given ownership. I'm still waiting for my shares of San Onofre.
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