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As electric bills rise, some states are focusing on the growing profits of utilities - AP News
As electric bills rise, some states are focusing on the growing profits of utilities
AP News
In the wake of rising electric bills, some states are increasingly looking at the growing profits of utility companies. With energy prices soaring, these profits continue to balloon while consumers face increasingly expensive bills to keep their homes powered. Here are a few states that are zeroing in on utility profits.
First up is Texas, where a large chunk of the population relies on power generated by coal. After facing a massive power outage back in 2021, the Texan power grid has been heavily criticized and scrutinized. And with 1 in 8 Texans living in poverty, this scrutiny has prompted a new law that requires electric companies to justify their increased profits.
In California, Gov. Gavin Newsom recently signed a bill that imposes limits on the profits of privately-owned utilities. The new law forces these utilities to keep their profit margins at 10% of their revenue.
According to the Texas Office of the Attorney General, since 2017, retail electric providers in Texas have increased their profits by 33% and the residential prices have gone up by 44%. This is due to a combination of factors, including a recent cold front in 2021 and the growing corporate profits.
The issue here is not that utility companies are making money; it's that they're making a lot of money while the cost of electricity keeps increasing for ordinary people. With pressure mounting, these companies are being forced to justify their profits and show that they are not pocketing the extra cash while ordinary people are feeling the pinch.
In conclusion, states are reexamining the profit margins of utility companies as electric costs continue to rise. Lawmakers are cracking down with new laws and policies
Source: "artificial intelligence" - Google News, Link
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