California Focus: Gas companies’ turn at PUC’s rate increase charade ...Middle East

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California Focus: Gas companies’ turn at PUC’s rate increase charade
Some have called the California Public Utilities Commission’s highly predictable rate increase procedures a “kabuki dance,” naming it for a Japanese form of theater involving high drama, but with the audience always knowing how things will turn out. Others merely call it a charade. Here’s how it works: Utility companies like Pacific Gas & Electric and Southern California Edison apply every few years for rate hikes. They invariably request far more than they know they can get, and then settle for much less than they requested. Management then boasts to stockholders about new revenues, while the PUC brags to the public about cutting down the absurd amounts asked by the utilities. Everyone goes

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