> From: "Carl Peterson" 
>
> Once the town starts making a profit, is it reasonable for them to take that 
> money and plow it into other things or 
> should they start cutting prices so as to cover expenses and not make a 
> profit? 
  It's very, very hard to give up a cash cow, government or not. 

> It would seem to me that it would make sense to fund a future 
> maintenance/upgrade fund, and then cut prices.  
  Rationally, what you should do depends on how easyly you can borrow new 
capital and at what interest rates. 
  In today's situation where money is cheap and interest rates are low, the 
rational thing would be to return profits to owners / cut prices assuming all 
things are equal. 

> My feeling is that it is appropriate for governments to run utilities, but 
> not for governments to run utilities as profit centers to fund other 
> operations. 
  Isn't the latter how most profitable government owned utilities are run? I've 
even heard it with pride how much money the utilities pay into the general 
fund. 

Jared

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