Ohio court rules against utility

The Ohio Supreme Court has upheld a state law that keeps a utility from earning excessive profits.
Associated Press
Dec 8, 2012

The state's high court on Thursday rejected an argument by American Electric Power that the utility should not have been assessed a penalty for taking excessive profits in 2009.

The Columbus Dispatch reports that the court, in a 6-1 decision, rejected AEP's argument that the penalty was based on a law too vague to be enforceable. The court also disagreed with business groups and consumer advocates who argued that the utility should have faced a larger penalty than the $42 million it paid.

The 2008 law gave utilities wide latitude to raise rates but also gave the Public Utilities Commission of Ohio the discretion to decide what constitutes excessive profit.

 

Comments

Darwin's choice

It's to bad that the oil companies aren't regulated the same
me way.............

Floyd P

In a perfect world, the larger the profit, the less we should have to pay for their services. Unfortunately, this law will line the executives' pockets while the public is at the mercy of escalating rates, without any regulation.

coasterfan

Just another example of rich corporations and the 1% (whom Republicans love to call "job creators") doing what they REALLY do: line their own pockets, instead of creating jobs that would help the middle class. When legislation is needed to keep the 1% from taking as much as they can from the middle class and poor, we have a problem.

I have always chuckled during the past few years when conservatives complain about Obama "redistributing wealth to the middle class". Since most of the conservatives who complain about it are middle class themselves, one would think that they would be upset at the fact that the 1% have free rein to redistirbute vast amounts of middle class money upwards. I'm happy that the Ohio Supreme Court, at least in this instance, has put a stop to that. The 2012 election showed that Americans no longer wish to support the ultra-rich. Current polls show that 2/3 of Americans think the 1% should pay a higher tax rate.

deertracker

I chuckle to at the same ridiculous complaint. When the Cons scream about "redistibuting wealth" they fail to realize and acknowledge they are on the receiving end of that transaction. No one is taking anything from THEM. I get a bigger LAUGH at the fact they don't actually realize who they are. 1% or what?

abigbear

coaster
lets see if you were ambishes (You have goals in your life and you strive to meet them. You stop at nothing. You are probably energenic. You are focused) that good thinking or hit the lotto you would not live better than anyone else because I'm FOR SURE THAT you would GIVE more of YOUR MONEY AWAY than you would live on..
and I'm SURE if you took all your money invested it and worked your butt off to get to the top I know you would gladly take the least amount of money(for you) and give more to your employees so they could live better than you because they for surely work harder than you the BOSS RIGHT?

Contango

The effects of decimating the profitabilty of public utilities was plainly on display from the results of Sandy.

"'As evidenced by Hurricane Sandy, the existing labyrinth of regulatory bodies, state agencies and authorities, and quasi-governmental bodies has contributed to a dysfunctional utility system,' Cuomo said in a statement."

http://energy.aol.com/2012/11/16...

No profit = no investment in infrastructure and improvements.

Maybe OH can ask for a massive Fed bailout the next time the power grid breaks down.

BTW: There are three power grids in the U.S. -

East, West and Texas.

http://www.google.com/imgres?q=n...

KURTje

What?! The executives making too much? That never happens.(blame a union)

abigbear

to the 47% and union workers
lets see if you were ambishes (You have goals in your life and you strive to meet them. You stop at nothing. You are probably energenic. You are focused) that good thinking or hit the lotto you would not live better than anyone else because I'm FOR SURE THAT you would GIVE more of YOUR MONEY AWAY than you would live on..
and I'm SURE if you took all your money invested it and worked your butt off to get to the top I know you would gladly take the least amount of money(for you) and give more to your employees so they could live better than you because they for surely work harder than you the BOSS RIGHT?

shucks

Is it really true?
Executives making too much?
I need a link for proof.
It has to the union's fault,no,it's Obama's fault.