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rakman t1_j4xwpjg wrote

Reply to comment by infestans in Need a sanity check on my gas bill by ancisfranderson

How does change of ownership increase regulated rates above what they would have been under the previous ownership? Is there a "new owner profit premium" in the calculation? If not, then what's your theory?

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infestans t1_j4y4r9x wrote

they requested an increase in their ROE, and got it. Its up over 10% now, maybe 11% IIRC. The cost of the actual utilities, gas and electricity, are pass-throughs, PPL does no generation. The only prices they control are via their ROE which they have to request from the PUC every 3-8 years. They're locked in for the next 3 years, but it would have been not unreasonable whatsoever to tell the company to swallow some profit margin to offset current high pass-through prices but the PUC is entirely made up of former NatGrid beancounters so why would they ever do that? They're paying off their own purchase via that 11% profit margin and you bet your ass in 2025 they'll be back asking for 12 or 13.

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man why weren't you at the hearing?

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