Sunday, May 3, 2009

Monopoly update GUD 9530

Just an update on the previous post. This line item is the result of the regulators finding that Atmos did not prudently handle their hedging or storage activities. It appears this means they are reviewed on lots of things and if they somehow spend money that is deemed imprudent they can be required to refund it to rate payers.

This is how we regulate a cost-plus monopoly. If they are stupid with their costs and we catch them we get some money back.

It does beg the question that if you were a customer during the time of imprudence and then left the market, how do you get your refund? (You don't). I would assume that new customers are also getting this refund???

No comments:

Post a Comment