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To: lewislynn

“Power companies, oil companies etc. love environmentalists.”

Lewis, you have an interesting viewpoint, and I happen to agree with it! I operate a Public Utility. A water company. Our profits are fixed by the Public Utilities Commission as a percentage. Right now it’s about 12%. But, to make things easy, lets say,,, around 10%. So, if it costs us $90 to produce and deliver a certain amount of water, we can charge about $100 for it. $10 profit. If the government and the epa (I hate them!) increase our costs through regulation to the point that that same “certain amount of water” costs us $180 to produce and deliver, well, at 10%, our profits are now about $20! They can even make a percentage cut, and we still make out like bandits!


16 posted on 08/27/2011 10:40:35 PM PDT by Dr. Bogus Pachysandra ( Ya can't pick up a turd by the clean end!)
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To: Dr. Bogus Pachysandra
Uh huh, and when you ask your customers to conserve their usage and they comply, you raise the price on reduced production to maintain (actually maximize) your profit.

Now you have increased supply, reduced usage/production and increased profit.

It's no secret (at least not to me) that it's a business model.

17 posted on 08/27/2011 10:56:39 PM PDT by lewislynn ( What does the global warming movement and the Fairtax movement have in commom? Misinformation)
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To: Dr. Bogus Pachysandra

Don’t regulators attempt to hold ROI (return on investment) fixed, not profit margins? I knew a guy who, in a previous life, had been an FCC regulator who worked the AT&T account. He admits that they were never sure what a rotary dial handset cost Western Electric, so they could never be sure how much to allow the phone company to rent it to you.


24 posted on 08/28/2011 5:06:33 AM PDT by Lonesome in Massachussets (Ceterum autem censeo, Obama delenda est.)
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