Researcher says U.S. utilities extract $60 billion in excess annual profits

A regulatory expert argues that utility commissions systematically approve returns on equity higher than needed to attract capital, costing ratepayers billions annually, and proposes competitive auctions as an alternative to current cost-of

First covered Oct 14, 2026 · 7:26 AM PT · 1 article · no longer in the live window

Researcher says U.S. utilities extract $60 billion in excess annual profits — Image via texasenergyandpower.com

Coverage

27d Texas Energy & Power The case for lower utility profits — Mark Ellis puts excess U.S. utility returns at about $60 billion a year, and lays out why commissions keep approving higher returns and how an investor auction…

Primary sources

capitol.texas.gov Schedule Display

ferc.gov Ferc Revises Public Utility Roe Methodology Sets Policy Natural Gas Oil Pipelines (ferc.gov)

marketclear.org Rate Of Return Equals Cost Of Capital (marketclear.org)

More coverage from around the web

economicliberties.us RATE OF RETURN EQUALS COST OF CAPITAL: A Simple, Fair Formula

harpers.org Power Brokers, by Nick Bowlin

ilsr.org How Utility Profits Drive the Energy Affordability Crisis

prospect.org The Secret Society Raising Your Electricity Bills - The American Prospect

americanprogress.org A Plan for American Electricity Affordability - Center for American Progress

Appeared in: 2026-10-14 (#4) · 2026-10-15 (#9)

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