Public utilities and a problematic issue on the allowance of profits. We all know that if you are only allowed to make 15 percent profit as in the case of Utilities Companies then why not spend more money so you can make 15 percent go up. For instance if you make $100 which are only allowed to keep 15, that you make two hundred dollars, then you get to keep 30. A utility is a quasi government agency in that it has no competition; it is regulated by government. It is a forced monopoly, so monopolies are fine as long as the government says so, yet very inefficient and to that end when you take an inefficient business model whether it is steel or energy and throw it into a deregulated ring where strong survive, you learn real quick just how inefficient and out of shape it is. Companies, which become or are labeled monopolies by government, yet got there through fierce competition are much different than companies, which are monopolies which were in fact created by the government.
Microsoft through consumer voting by their dollars, became best of the breed and the ultimate in efficiency. Customers perceived their products and services superior. Microsoft coupled this with brilliant strategic planning and that does it. They owned the market because we voted for them, then all of a sudden it was then illegal. If you look at any government agency you will see that each year they spend more money right up into the maximum of their budget. If they spend a little more than their budget, then next year they can have a little more money. This is the exact opposite of General Electric, GM, 3M, IBM or even Mars M and M's which live or die on their abilities. General Electric each year tries to bring down cost. Governments on the other hand try to spend more money every year trying to get bigger. Government's number one job is to protect her people, but it appears governments number one job over the last century is to get bigger with more bureaucracy. If you have a utility company that operates that way, then there is significant waste, yet it is encouraged by government, because it is modeled after a government agency, a system without competition; a flawed system.
Any business, which goes from a monopolistic-quasi-government-style to a free enterprise operating company overnight, is sure to wreak havoc. Both for its customer-citizen base and the company-agency itself as we saw as the CA energy giant went into BK. What is interesting is that we now look back in hindsight and say, "well maybe deregulation is not good for utilities?" That is nuts, of course it is good.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs
Lincoln Stretch rentals Alsip ..When were the forms of media created? When did advertising... Read More
The prosecutors in the Martha Stewart Case used testimony from... Read More
We know that the International Terrorists like the idea of... Read More
Ethanol is a great way to produce fuel, great fuel... Read More
"Those who sacrifice essential liberty for temporary safety are not... Read More
Journalism, as it is often said, is the 'fourth branch... Read More
INTRODUCTIONThe aim of writing this article is to encourage the... Read More
Today we have a new franchise report from the Federal... Read More
As the populations expand in Colorado outside of Denver, Las... Read More
Regarding the issues with the Space Shuttle and the in... Read More
I would like to pose a question. I am unsure... Read More
The great leader and Senator from New York and wife... Read More
A. THE PHILOSOPHY OF COMPETITIONThe aims of competition (anti-trust) laws... Read More
In years past California Mutual Assistance Program and emergency response... Read More
Recent international wars and the often spectacular ways in which... Read More
Many folks who are pro-NASA and Pro-Space Colonies say that... Read More
It can be dangerous to engage in free speech. This... Read More
We need a government that can be as responsive to... Read More
Many have lost faith in the government and are completely... Read More
Everyone knows the United States Government often falls down in... Read More
President Bush's selection of the Hon. John Roberts is an... Read More
Without the flow of fuel our very mobile society comes... Read More
When you look at the news, immigrants are dying trying... Read More
In order to build a stronger, more self-sufficient America, America... Read More
I hear it all the time; you can't say that.... Read More
Western Springs shuttle limo ..The number-one question people ask us is, "What possessed you... Read More
Pierre Dupont de Nemours:After arranging the Armistice that ended or... Read More
It is amazing how the Federal Trade Commission has destroyed... Read More
What has really changed in the housing market with regards... Read More
Please read through this quick thought and discussion as if... Read More
The cause of America is in a great measure the... Read More
The recent Jakarta summit of Asia and Africa brought remembrance... Read More
It appears we are having a terrible situation with the... Read More
We are told by out leadership that we risk loss... Read More
California Attorneys and politicians are to blame for the energy... Read More
I have witnessed a new era of security in the... Read More
Most citizens agree that we need the Federal Trade Commission... Read More
The shouting is over and directions for the next four... Read More
In the fields of juvenile justice policy and programming, there... Read More
The recent first round of the Iranian elections somewhat resembled... Read More
Rule of Thumb for exporting technology. The American People need... Read More
Entrepreneurs can clean up the environment if we would let... Read More
Recently a friend insisted that I read a book by... Read More
The Organization for Economic Cooperation and Development issued a report... Read More
Recently in Professional Builder a cover article discussed how the... Read More
I have to be honest. It is time to come... Read More
Recently in Maine, I talked with a gentleman and we... Read More
Policemen in many US cities are taking their new authority... Read More
THE ROSICRUCIAN COUNCIL OF THREE:A Thelema/OTO leader who became a... Read More
An article in Information Week in January 14, 2002 discussed... Read More
Political |