It used to be that investors would buy shares of stock which the corporation would then invest in their business. By selling their product for a profit, the shares would increase in value over time, rewarding investors.
If the corporation wanted to expand its operation it would go to a Wall Street banker and have them put together an offering outlining the risks and potential rewards in a prospectus offering new shares of stock to potential investors.
Today, rate payers have become the investors. The corporation goes to the PUC and asks for a rate increase to build, repair or replace various parts of their business, exposing investors to little if any risk. Repairs once paid for by retaining a portion of the profits and reinvesting in the corporation is a process that doesn't seem to exist anymore.
The PUC is supposed to work in the interest of the consumer, not the utility, and as such the only time a rate increase should be granted would be for a permanent cost increase - never for a temporary expense.
A rate increase granted by the PUC to Columbia Gas for repairing infrastructure was granted just the other day. When the work is complete, does Columbia go back to the PUC and say we need a decrease because our work is complete? Of course not, the rate increase is turned into profit and handed over to shareholders.
The PUC must be held accountable for their inappropriate increases and return this money to the ratepayers.
- Todd Clay, York