Archives › 2010 › December
A while back, we raised the question of whether or not deflation (not IN-flation) was going to ruin the predicted economic recovery (Is Deflation a Real Threat?). Since we wrote that interesting post, the Fed has continued to increase money supply in the economy, resulting in no material change in unemployment and reports that corporate [...]
If you watched 60 Minutes (CBS) on Sunday 12/19 then you heard a story about how the States are in big trouble with their budget deficits that renowned Wall Street analyst Meredith Whitney says is likely to lead to a wave of municipal bond defaults. The prologue for failing municipalities looks like this: the State [...]
The Kentucky PSC has decided to allow the Kentucky American Water Co. a 29% increase in its water rates. The average residential customer will see monthly bills increase from $27/mo to $35/mo, or about $96 per year. The PSC had considered this case for about 10 months. We first reported the filing on this blog [...]
Another example of how expensive it can be when infrastructure fails. In this case, a water main break covered an entire house in ice.
Blogging live from the water marketing conference today. Our talk went very well. We highlighted the business model of utilities and described the pricing constraints based on the regulatory model. Government utilities regulate prices based on Direct Ownership where elected officials approve rates. Those rates must not be arbitrary, unreasonable, or capricious. The best way [...]
Once again we have a graphic image of what happens when infrastructure fails. The costs of infrastructure failure are not localized to utilities. Sometimes, the costs become very personal, as is the case here. You can read the full story from this event here http://www.wtop.com/?sid=2187215&nid=25