Nothing if you are one. Like Entergy Mississippi and Mississippi Power. Regulated monopolies are largely protected from competition and are great for their shareholders. Not so great for their customers though. Especially if the regulator (the Public Service Commission) has its thumb on the scale for the monopoly.
And if the utilities’ army of lobbyists out-mans or out-womans and out-spends and out- entertains and consequently out-influences the Legislature, which makes the rules for its regulator to favor utilities. It’s a slam dunk for utilities in the Legislature since most of their customers don’t have lobbyists. Or anyone else to speak just for them.
So the Legislature makes a rule telling the PSC to put its thumb on the scale for the monopolies. And the monopolies’ advertising and public relations campaigns make customers think their electric rates are a bargain. And that solar plants and other green energy experiments will generate electricity cheaper than plants running on natural gas. And that billions spent to build and maintain Entergy’s old Grand Gulf nuclear plant (which runs occasionally) are a good deal for customers. And so on.
We have written before about how regulated monopolies and their political allies deceive customers. You may remember Mississippi Power’s Kemper County Lignite Plant. It was a scheme to charge customers for an expensive green energy experiment to turn low grade coal (lignite) into synthetic natural gas to generate electricity. Its hopelessly complicated Rube Goldberg gasifier failed as predicted. So Mississippi Power and its Southern Company parent wrote off over $6 billion they planned to mark up and pass on to customers.
Many politicians and two of the three PSC Commissioners backed the expensive Kemper experiment. So did the Public Utilities Staff (PUS) — a state agency created after a Grand Gulf scandal sent two PSC Commissioners to prison. It’s supposed to advise and keep an eye on the PSC. Some watchdog.
Support for Kemper and its higher rates lasted until more information made it politically toxic.
If you wonder why anyone would back an expensive experiment vs a cheaper proven alternative, it’s because utility monopolies make more money from expensive plants than from cheap plants. They get a guaranteed profit (return) on the money they spend (capital invested). So the more they spend, the more they make.
And the more they make, the more favors they can do. And the more favors they do, the more political friends they have.
We want to take the PSC’s thumb off the scale for utilities. One of our board members tried to call a Legislative Committee Chair about this last year. He reached her at a Saints game — in the Entergy Box.
Ironically, that game is remembered for a thumb-on-the-scale officiating mistake. A pass interference no-call (probably inadvertent) hurt the Saints chance to make the Super Bowl.
But the thumb-on-the-scale rule is not inadvertent. It explicitly requires the PUS to “balance” the interests of customers and utilities and implicitly requires the PSC to do so. It’s like saying your lawyer must represent the other side too. And the judge must always split the baby.
Utilities have armies of lawyers and consultants to persuade the PSC to increase rates. They can jump through rate case hearing docket hoops for their clients. A few large customers have lawyers and consultants to jump through PSC hoops too and get them sweetheart contracts (confidential contracts that other customers don’t see). But most customers don’t have anyone to speak for them. And the utilities like it that way.
We think the PSC should put customers’ interests first. Especially small customers. We want a state customer or consumer advocate to represent those customers who have no effective voice now. Studies show this works in other states. Such advocates level the regulatory playing field somewhat and reduce the officiating advantage utilities enjoy.
The Public Utilities Staff can be charged and reorganized to do this. It can also continue to provide expert analyses for the PSC to counter-balance utility experts in an adversarial proceeding and help the PSC make better and fairer decisions. No more Kemper’s.
Now there is a new omnibus rule before the PSC. It’s called the Integrated Resource Planning Rule. It may be a good idea – for utilities. It must be because they got it passed. Now they want to write the fine print to implement it. Without help from anyone representing their customers.
Utilities (specifically Mississippi Power) don’t want Bigger Pie to comment or intervene on the bill in behalf of customers who don’t have the time or money or expertise to do so. Or in behalf of the general public and state’s economy which are hurt by high electric rates.
The IRP Rule says utility monopolies should foresee and plan for the future. Other states have such rules. The idea is if utility monopolies think about future electric demand and supply, they will do a better job of providing an economical reliable supply. And customers and the economy will be better off. Sounds good. Who could be against that?
It’s hard to argue with those objectives. If they benefit customers. So why not let Bigger Pie comment on and help with the plan? Possibly for the same reasons Mississippi Power and the PSC didn’t answer Bigger Pie’s questions about Kemper’s incomplete engineering, rigged projections about future natural gas prices, and optimistic assumptions about technological risk. The answer then was hubris and things to hide. The result was the biggest political boondoggle in the state’s history.
Same answer now? Happy Valentine’s Day.
Kelly Williams is the former President of First Mississippi Corporation and the author of this post.
13 comments:
What about unregulated monopolies like the rube REA's? Even more dangerous. "Hey REA's, are you enjoying holding on to my capital credits? I may have to call A.G. Wentworth.
Haley and Phil were solidly behind Kemper.
>>>Haley and Phil were solidly behind Kemper.
Know any pimps who will turn down having another ho?
Anyone who regularly deals with Entergy can tell you about how much more difficult they have become to deal with in recent years. You use to be able to call up an engineer and get answers and help with construction related issues. They are now about as easy to work with as the IRS. The quality and competence of their employees has noticeably decreased, and they are mired in bureaucratic rules and firewalls that seem designed to keep you from dealing with anyone other than a customer service rep.
They will also act like they have carte blanche to access private property without permission, if it makes their job easier, and let you wait your sweet time to be compensated for damages.
Other states, like Texas, have deregulated and seen energy prices drop and business boom. Why can’t Mississippi?
MPCo , Entergy and REA's/EPAs/ECM or whatever the hell they are all have lobbyists, and contribute MIGHTILY to every State politically elected politician that will favor their corrupt enterprises. This is an absolute sin hat the elected "leaders" of MS accept these blood monies each year from these assholes.
>>>This is an absolute sin hat the elected "leaders" of MS accept these blood monies each year from these assholes.<<<
What if "the elected "leaders" of MS" are assholes and "accept these blood monies each year from these assholes" because they are brothers from different mothers?
People- what the coop degenerates do is take your hard earned money, through your monthly electric bill, and send it to their “Political Action Committee” slush fund. Then they distribute out each year, usually at golfing events and “fundraisers” your money in form of a campaign contribution to the “powers that be”. The coops pay hush money to Bennie, Wicker, etc etc Reeves, Gunn and so on. They “pay” political protection money so that you go broke and their monopolistic enterprises go on and on. All on your dime. Sleep well my friends sleep well.
What an absolutely great, informative, and TOTALLY UNBIASED opinion piece, written again promoting the value of natural gas for electrical generation by individuals that have a strong, vested, financial interest in what??? NATURAL GAS, of course.
Love how Bigger Pie (which likes to claim its lack of governmental connection) uses its forum to promote the interests of its board members and advisors while pretending to be doing nothing but 'standing up for the poor people'. Reminds me of the good ol' days - Bilbo, Johnson, hell - even FDR who sat in his mansion and claimed to be worried about the poor Forgotten Man.
3:20 - let me call your bluff. And raise you.
Please provide some evidence - any evidence - of this "hush money" that you know so much about that is going to any elected official. I don't care if it is Bennie or Wicker. Tate or Hood or Waller.
Bring it on. I want to see what you can put and show us what your alligator mouth can produce to cover your jaybird ass.
8:44, read the individual candidates campaign contributions on the SOS website. The rest you'll have to file a FOIA.
8:44 did someone touch a nerve?? Hmmm?
Really poor grammatical errors aside, you should mention that MS has some of the lower rates in the nation. And as far as pie-in-the-sky goes, solar & wind can be useful, but they are not replacements, especially in MS, for base load plants.
Back up and tell me how it would work out for you if everybody in your little HOA bought their electric power off the grid-market and there were eleven TV cables running through your front utility easement representing previous and current providers.
Oh, and five ambulance companies representing your county along with that many garbage trucks of different colors on garbage day whizzing down your street.
Think, Dipwads, Think!
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