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Post by Art Vandelay on Mar 3, 2011 9:46:15 GMT -5
This is why privitising natural monopoly markets is a really bad idea. Well except those water bills are from government owned water systems. Here in Florida municipal utilities can set rates and deal with customers however they like. The only recourse people have is at the voting booth. Private utilities get regulated through the public service commission and can't raise rates without the commissions approval. ...And if you don't like the prices the commission approves you're back to sqare one, except this time you're competing against bribes from the water company.
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Post by m52nickerson on Mar 3, 2011 12:58:24 GMT -5
...And if you don't like the prices the commission approves you're back to sqare one, except this time you're competing against bribes from the water company. Maybe in other places. Most of the time the commission is quite hard on the utilities. I know for water systems they make the system justify any rate increase with expenditures. With means that if a private utility needs to replace its water mains the utility has to pay for that first, then ask for the rate increase. Plus they can expect that increase to pay for that upgrade over 10 years. ....and not all private utilities are huge corporations.
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Post by Art Vandelay on Mar 3, 2011 17:05:33 GMT -5
...And if you don't like the prices the commission approves you're back to sqare one, except this time you're competing against bribes from the water company. Maybe in other places. Most of the time the commission is quite hard on the utilities. I know for water systems they make the system justify any rate increase with expenditures. With means that if a private utility needs to replace its water mains the utility has to pay for that first, then ask for the rate increase. Plus they can expect that increase to pay for that upgrade over 10 years. ....and not all private utilities are huge corporations. My point is either way you're relying on the government to do the right thing and not raise prices (either directly or indirectly), with fuck-all you can do about it if they do.
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Post by m52nickerson on Mar 3, 2011 17:38:48 GMT -5
My point is either way you're relying on the government to do the right thing and not raise prices (either directly or indirectly), with fuck-all you can do about it if they do. Basically, yes!
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