Are franchise taxes paid to a State, City or Municipality by Utility companies a Conflict of Interest?

Question

If a State has a Public Service Commision, and that agency is in business to protect Utilities, who takes care of the citizens?

We aren't customers, because we pay to keep the utilities in business no matter what kind of job they do.

Are franchise taxes a deterrent to Public Service? Is giving all power to the utilities a smart move?

What about people?

Answer 1

The purpose of a PUC is not to protect utilities, but to regulate them.  Most utilities are regulated monopolies and it's a fine line between between allowing the utility company to earn a proper profit and keeping rates reasonable for the citizens.  Some do a much better job than others do.  Our water rates have doubled in the past year and the water company is asking for another 50% increase in rates.  The regulators are finally listening to the citizens.