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Hello,
Nearly every American knows the feeling of sticker shock after opening a sky-high utility bill, but few know of the monopolies — investor-owned utilities — responsible for driving these high prices. Utility monopolies manipulate the regulatory process to earn excess profits at the expense of consumers and function as gatekeepers for innovators and businesses who can deliver better, more efficient energy options. Building on our 2024 report, " Reforming the Utility System to Better Serve the American Public [[link removed]] ," Economic Liberties has two new releases designed to help policymakers rein in monopoly power in the industry.
The first resource, “ Tools [[link removed]] for Reining in Monopoly Utilities: A Guide for State Lawmakers [[link removed]] ,” is a comprehensive toolkit from our state and local team that outlines 11 actionable policy recommendations to curb monopoly power. From stopping utilities from using ratepayer money for lobbying to banning abusive fees and promoting independent power distribution and public power options, this guide equips state lawmakers with the strategies they need to challenge entrenched utility monopolies and restore fairness to the system.
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The second resource, “ Rate [[link removed]] of Return Equals Cost of Capital: A Simple, Fair Formula to Stop Investor-Owned Utilities from Overcharging the Public [[link removed]] ,” does a deep dive into a key solution to bring down utility bills — eliminating excessive rates of return on what utilities charge consumers. Written by our Senior Fellow for Utilities, Mark Ellis, who previously worked at energy giant Sempra, the white paper explains how IOUs manipulate the rate of return formula to extract billions in excess profits from ratepayers and lays out how states can adopt a fair, market-based cost-of-capital standard, ensuring utilities serve the public interest instead of enriching shareholders.
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These tools come at a crucial time as utility monopolies continue to consolidate power, drive up costs, and stifle innovation as America’s energy demands soar. By implementing the reforms outlined in these resources, we can push back against unjustified rate hikes, end corporate abuses, and help build a competitive and fair energy system that works for everyone.
I encourage you to explore these resources and share them with your networks. We are working with partners in several states to move these solutions forward, if you have questions or would like to get involved, please don’t hesitate to reach out.
Thank you for your continued support.
Nidhi
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