Quote:
Originally Posted by Whynotnow
Understood, the admin fee on the top part is what you are paying your retailer to administer your bill.They make some money off of this.
Rate riders are things that are used to true up the regulated provider for things in the past, these can be both in the forms of rebates and charges.
The franchise fee is charged by your local municipal government effectively in lieu of property taxes and is flowed through directly to the customer.
It’s all highly regulated, they aren’t making money off of really any of those items. They make money through the return on equity of the investment in their rate base which would be in the delivery charge portion.
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So they're making money by collecting the delivery charges and paying off the cost of their capital expense over time.
But they're at the same time making money by raking in the admin fee.
Seems like double dipping to me...