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
executive chauffeured services Bradford .. Madison to Airport carEinstein when ask how did he believe WWIII would be... Read More
I am noticing an increasing and alarming rate to which... Read More
According to a postulate made by Ignacio Ramonet ecological resources... Read More
At the start of the US involvement in WWII Joseph... Read More
A few hours ago, Colonel Ely Ould Mohamed Vall, the... Read More
Death may not be dignified in any light but the... Read More
It appears we are getting a little bit of Sun... Read More
Many Americans feel betrayed by their government, our government. I... Read More
Many in the peanut gallery of society are so quick... Read More
Just as everyone has breathed a sigh of relief at... Read More
North Korea and diplomatic games; something has to give and... Read More
Recently the CIA staged a practice simulation of a cyber... Read More
You have probably heard of the Sarbaines Oxley Law (SOX)... Read More
In these times when states are suffering extreme downward pressure... Read More
The debate to raise minimum wage in California is totally... Read More
The other day I was sucker punched, hoodwinked, bamboozled, had... Read More
The United States has enemies, which call the country the... Read More
Some people say that we cannot put a colony on... Read More
We can all see the issues involved in the cloning... Read More
I heard on the news this week how America continues... Read More
For more than a decade, you the American taxpayer have... Read More
Roberto Calvo Macias, a young author and thinker from Spain,... Read More
Handing over power to Vladimir Putin in 1999, Boris Yeltsin... Read More
Please read through this quick thought and discussion as if... Read More
China is serious about breaking into the bio-tech field and... Read More
O'Hare Chicago prom limo ..United Liberation Front of Assam (ULFA), one of the most... Read More
We see today a fierce unspoken competition between trucks and... Read More
The new law "Special Protective, Antidumping and Import Compensatory Measures"... Read More
(Note: This article was written slightly before the 2004 election;... Read More
What is the so-called "nuclear option" that Senator Bill Frist... Read More
In discussing the OODA Loop theory on Limited War by... Read More
Sizing up North Korea is important for a war there.... Read More
All government regulators or diplomat who are in high risk... Read More
Heaven, Hell, or some sort of Purgatory.I cannot seem to... Read More
The UnbornWith all this cloning in the news one can't... Read More
In Belarus parliament is going to struggle with degeneration of... Read More
Even the most devout proponents of free marketry and hidden... Read More
Farmers will eventually be facing federal regulations involving air emissions... Read More
I am an incurably ill American male forced to leave... Read More
Due to the bizarre weather patterns this winter California got... Read More
The Federal Trade Commission in their latest move to increase... Read More
The Immigration and Naturalization Service (INS) estimated that there were... Read More
The debate to raise minimum wage in California is totally... Read More
As the Baby Boomer Generation continue to get older, one... Read More
As the death toll in the avalanche-hit Jammu and Kashmir... Read More
America is filled with standouts and perserverance; our nation has... Read More
The number of countries in the world at the moment... Read More
The most damaging factor to our economy today is the... Read More
Prison guards and corrections professionals are hard at work insuring... Read More
This is no time for the Black community to sue... Read More
Political |