It is called return on investment and there is an expectation of a
percentage of earnings.
Some companies keep a cash reserve for buy outs and reinvesting in
the company. They also buy back stock to increase it's value.
Public Service Commissions (they are called different things in
different states) set what they feel is a proper return on
investments and only allow Public Utilities to raise their rates up
to what they feel is the ceiling. After that the only reason they
will raise rates is to keep up with increased fuel costs.
My mother lives in TN and has TVA as her supplier and they just got
approval for a 20% rate hike due to increased fuel costs.
How to explain what each individual company does is beyond my pay grade.
Stewart
At 12:14 PM 9/8/2008, you wrote:
>That is not greed it is called expected return on investment.
Not all profits are bad.
Not all profits are good.
Rev. Stewart A. Marshall
mailto:[EMAIL PROTECTED]
Prince of Peace www.princeofpeaceozark.org
Ozark, AL SL 82
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