The “just and reasonable” standard, as practiced, can no longer be said to effectively balance public and corporate interests — a balance which is the entire point of the regulated utilities market.

Utilities spend hundreds of millions of dollars every year lobbying federal and state lawmakers, agencies, and regulators. This investment influences the pace and progress of climate legislation, cements existing utilities’ market dominance, and of course, ensures ongoing high rates of return for IOUs.

Utilities save cost by polluting and then cash in on the clean-up. Consumers are left dealing with the health consequences… and with higher utility bills.

Rather than push for increased scrutiny of surcharges by utility commissions, some state legislators have exploited the surcharge mechanism to fund public policy programs — loading costs onto utility bills to bypass the appropriations process and avoid public accountability for spending decisions.

Energy bills have become everything bagels… just not the good kind. Delivered to your mailbox every month, topped with loads of items you’ve never heard of, didn’t opt into, and can’t opt out of. These toppings, which tend to fall disproportionately on low-income households, are more than just annoying and expensive — they’re rate hikes without rate hike approval.

Regardless of an IOU’s actual return on equity in any given year, which is impacted by the timing of actual capital costs, consumers pay a premium based on the authorized ROE. Private companies providing public services — and granted monopoly franchises in exchange for doing so — are charging U.S. customers excessive rates for energy.