The second resource, “Rate of Return Equals Cost of Capital: A Simple, Fair Formula to Stop Investor-Owned Utilities from Overcharging the Public,” 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 |
