Organized Money The Pocket Picking Machine: Discussion of Electric Utilities with Mark El

Why are we paying so much for service that can be so unreliable? You can ask that about a number of services in this economy, but today we’re talking about utilities. Seemingly nobody likes their utility company, often with good reason. And on today’s episode, we found an expert who has uncovered a utility scam that will probably make you even unhappier.

In this episode, Matt and David talk to former utility executive Mark Ellis, who exposes how a small group of economists and some untrustworthy economic models have allowed utility companies to inflate rates and spend ratepayer funds on dubious projects. The scam that has misled regulators and even ratepayer advocates, leading to excessive profits for investor-owned utilities at consumers expense. It comes out to $50 billion in excess profits every year, about $300 per household in the U.S.

Ellis breaks down utility regulation, how rates are set, and the surprising difference in rate increases between investor-owned and public utilities. Prepare to break some plates, and demand some serious reform!

Transcript here:

Mark Ellis Bio:

The Paper by Mark Ellis discussed in this episode:

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