For several years I have heard the argument that utilities must get the rates they ask or their cost of capital will increase and must be passed on to ratepayers. I wonder if we are actually being told that we should give them an extra dollar to avoid being charged an extra dime.
We need managed de-capitalization of gas utilities. In New York, gas costs are recovered over 60 to 85 years but State 80x50 policy requires dramatically less gas use in only 31 years. When rating agencies figure this out, cost of capital will increase due to stranded asset risk.
