DarkRange55
Enlightened
- Oct 15, 2023
- 1,501
My friend thinks that Americans pay far too many taxes and we should have national free government subsidized electricity and the government should just own and operate the entire power grid.
He says we pay income tax, property tax, sales tax, fuel tax, excise taxes, utilities taxes, sin taxes, sugar taxes, gambling taxes, ect.
What do you think? Should we subsidize electricity to be free for the nation like universal healthcare?
With electricity prices, you're also paying for the maintenance and to build the infrastructure and they have to make a profit, too, not just the energy itself.
All utilities either public or private are regulated by state and federal government. Thats for safety, reliability, and cost. Publicly owned power companies dont collect a profit but they also dont pay taxes on their installed infrastructure. That can result in higher taxes for the consumer in those counties which can offset the usually lower per unit cost of a public power company.
Private investor owned company's make a profit that is set by the states public utility commission (PUC). They also pay franchise fees to the cities and counties they serve and taxes on every piece of installed plant (poles, wires, cable, transformers etc).
One can argue the advantages and disadvantages of either.
Power companies like cable suppliers operate under franchise agreements with the government in the area they operate. They pay $$ to the government where they operate.
(Municipalities do not pay. Investor owned pay)
A franchise agreement is a negotiated contract between a municipality and a utility service provider that grants the utility provider exclusive rights to the area. This fee typically covers the expense of utility companies' use of public space also known as public "right-of-way" for energy infrastructure like power lines or gas pipelines. This is typically between 5–7% of a utility's budgeted revenue, but can sometimes be as high as 10%. Franchise fees are different from taxes because they are negotiated with local agencies, not determined by the legislature.
Some poles only have 1 utility on them and those are called solely owned poles. If another utility company wants to attach to that pole they pay the utility that installed a percentage. Utilities share the cost of poles. Based on how much of the pole height and class they use/need. They are called joint poles because they are jointly owned. Each Utility must buy space on the pole.
Cable companies and phone companies share the same position on poles. It gets fairly messy and complex. Their stuff is always below the power utility equipment/conductors. Lowest level on the pole usually since fiber is the newest guy in town and poses no safety threat.
Property taxes must be payed on each pole.
Its quite an accounting exercise overseen by the Joint Pole Assoc
One of my godfather's has a bachelors in nuclear engineering and a PhD in electrical engineering. He used to work for the electrical utilities.
One of my previous jobs was fixing power plants.
One of my mentors holds many patents on solar technology (and many other inventions).
He says we pay income tax, property tax, sales tax, fuel tax, excise taxes, utilities taxes, sin taxes, sugar taxes, gambling taxes, ect.
What do you think? Should we subsidize electricity to be free for the nation like universal healthcare?
With electricity prices, you're also paying for the maintenance and to build the infrastructure and they have to make a profit, too, not just the energy itself.
All utilities either public or private are regulated by state and federal government. Thats for safety, reliability, and cost. Publicly owned power companies dont collect a profit but they also dont pay taxes on their installed infrastructure. That can result in higher taxes for the consumer in those counties which can offset the usually lower per unit cost of a public power company.
Private investor owned company's make a profit that is set by the states public utility commission (PUC). They also pay franchise fees to the cities and counties they serve and taxes on every piece of installed plant (poles, wires, cable, transformers etc).
One can argue the advantages and disadvantages of either.
Power companies like cable suppliers operate under franchise agreements with the government in the area they operate. They pay $$ to the government where they operate.
(Municipalities do not pay. Investor owned pay)
A franchise agreement is a negotiated contract between a municipality and a utility service provider that grants the utility provider exclusive rights to the area. This fee typically covers the expense of utility companies' use of public space also known as public "right-of-way" for energy infrastructure like power lines or gas pipelines. This is typically between 5–7% of a utility's budgeted revenue, but can sometimes be as high as 10%. Franchise fees are different from taxes because they are negotiated with local agencies, not determined by the legislature.
Some poles only have 1 utility on them and those are called solely owned poles. If another utility company wants to attach to that pole they pay the utility that installed a percentage. Utilities share the cost of poles. Based on how much of the pole height and class they use/need. They are called joint poles because they are jointly owned. Each Utility must buy space on the pole.
Cable companies and phone companies share the same position on poles. It gets fairly messy and complex. Their stuff is always below the power utility equipment/conductors. Lowest level on the pole usually since fiber is the newest guy in town and poses no safety threat.
Property taxes must be payed on each pole.
Its quite an accounting exercise overseen by the Joint Pole Assoc
One of my godfather's has a bachelors in nuclear engineering and a PhD in electrical engineering. He used to work for the electrical utilities.
One of my previous jobs was fixing power plants.
One of my mentors holds many patents on solar technology (and many other inventions).
