Category — Public utility regulation
Dear Fellow Shareholders:
By now you have heard news reports of Consolidated Utilities (ConU)’s $1 billion cost overrun on the construction of our nuclear plant. However, that’s just part of the good news we have to report. If all goes according to plan, we will be able to overrun another $1 billion before the project is complete. You are, of course, aware this extra $2 billion in our capital base will mean higher earnings for decades to come with increased dividends for us all. We are, indeed, a green company.
This achievement brings with it challenges that your management team is well equipped to handle. While these cost overruns and associated incremental profitability is our fiduciary duty in our world of public-utility regulation, they come with increased public criticism, large expenditure of political capital, and problems for our regulatory allies.
Defending Ratebase Inflation
Your management has responded to the public relations-public sector issue proactively as you have come to expect. We are building on our strengths and experience with these specific measures:
· We have set up a full-time damage control “war room” to take the place of our weekly meetings on stifling critics and manipulating the press.
· We have expanded the scope of services from our outside PR firm. They have been tasked to collect excuses used by other utilities in the past. These excuses will be duly polished and passed to our state regulators where they can be used to provide them with cover.
· Our law firm’s energy practice group now has experienced criminal defense attorneys as part of their team. We are ready for the lawsuits that are sure to come.
· We are continuing our practice of ruining the lives of whistle-blowers and making lucrative arrangements for those who help cover-up our mistakes, falsehoods and corruption. [Read more →]
August 21, 2012 3 Comments
The top agenda item for many climate activists (James Hansen, for example) is stopping the construction of new coal-fired power plants. Coal is the most carbon-intensive fuel, and the carbon dioxide (CO2) emissions from new coal plants at various planning stages could swamp by as much as 5 to 1 all the emissions reductions the European Union, Russia, and Japan might achieve under the Kyoto Protocol. Either climate activists kill coal, or coal will bury Kyoto. [Read more →]
February 19, 2009 3 Comments