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Re:Affordable Care by lxmorj on Friday January 13, 2017 @10:36PM (#13396708)
I used to work for a utility company and there was a huge aversion to any innovation that drove costs down. Guaranteed ROI is incredibly counter-productive as a regulatory measure.
Re:Affordable Care by RA_Fisher on Saturday January 14, 2017 @12:57AM (#13397144)
Gotta keep that cost basis high to apply the ROR against! Build a big nuclear reactor paid for by the rate-payers pass go and collect 8-10% ROR!
Re:Affordable Care by smallnamespace on Saturday January 14, 2017 @02:00AM (#13397303)
There's actually little incentive to do this because increasing the cost basis usually costs more investor dollars.
Re:Affordable Care by RA_Fisher on Saturday January 14, 2017 @10:36AM (#13398817)
Not if they get pre-approval in a rate case. Well and like the OP mentions it's often done by overlooking efficiency gains.