Tag Archives: gouging

Utilities levy an absurd tax upon the rest of their fellow-citizens –Adam Smith

What’s next door to Georgia Power, also a Southern Company, and raising rates on customers who are using less electricity? Alabama Power.

Rebecca Smith wrote for WSJ 21 March 2013, Return Rates for Utilities Get Harder Look

Households getting electricity from Alabama Power Co. are using 6% less than five years ago. But their monthly power bills still have increased by an average of 8%, partly because of a lucrative rate agreement that the utility brokered with state regulators 30 years ago.

“an absurd tax upon the rest of their fellow-citizens”
—Adam Smith

The deal allows Alabama Power, the state’s largest electric utility, to adjust its rates annually to maintain a return on equity, a measure of profit, of 13% to 14.5%. Now it is coming under fire from consumer advocates and one state utility commissioner, who argue that the utility’s profit levels are too high.

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CCA charges inmates five days’ pay for one telephone minute

That’s $1 a day in pay and $5 a telephone minute. While CCA is collecting as much as $200 a day per inmate in your tax dollars and CCA’s CEO is compensated $3,266,387 from your tax dollars.

Amanda Peterson Beadle wrote for ThinkProgress 16 November 2011, Private Prison Charges Inmates $5 a Minute for Phone Calls While They Work for $1 a Day

Last year the Corrections Corporation of America (CCA), the nation’s largest private prison company, received $74 million of taxpayers’ money to run immigration detention centers. Georgia, receives $200 a night for each of the 2,000 detainees it holds, and rakes in yearly profits between $35 million and $50 million.

Prisoners held in this remote facility depend on the prison’s phones to communicate with their lawyers and loved ones. Exploiting inmates’ need, CCA charges detainees here $5 per minute to make phone calls. Yet the prison only pays inmates who work at the facility $1 a day. At that rate, it would take five days to pay for just one minute.

They charge for food, too.

And remember, CCA profits from anti-immigration laws, at taxpayer expense:

Recent anti-immigration laws in Alabama (HB56) and Georgia (HB87) guarantee that neighbor facilities will have an influx of “product.” In the past few years, CCA has spent $14.8 million lobbying for anti-immigration laws to ensure they have continuous access to fresh inmates and keep their money racket going. In 2010 CCA CEO Damon T. Hininger received $3,266,387 in total compensation.
Private CEO profit for public injustice. Does that seem right to you?

We don’t need a private prison in Lowndes County, Georgia. Spend those tax dollars on rehabilitation and education instead.

-jsq