BobbyRobertson t1_iu4midj wrote
Reply to comment by redshirttiger in Aquarion a subsidiary of eversource recently aquired my towns public water. I am the only person still furious about this corporations absurd monopoly in CT? by writingonthefall
Their profitability is regulated by the states to be a percentage of costs. They inflate costs and overrun the budgets of approved projects because that directly inflates the profits they're allowed to pull, even though the margins are the same. John Oliver did a great episode on this
>The law imposed some restrictions – companies are supposed to spend the least they can while providing quality, environmentally safe service. “Which sounds great, because it caps their ability to make too much money,” Oliver said. “But, and this is a huge but, there is a carve-out. Because when they build something – a piece of physical infrastructure – they’re allowed to then pass along that cost to you through your bill, plus an additional percentage that they get to keep as profit” that’s usually about 10%. “This creates a clear incentive: the bigger the project, like a power plant, the more profit they make.
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