The reason my record with troubled utilities is better than with troubled companies in general is that utilities are regulated by the government. A utility may declare bankruptcy and/or eliminate its dividend, but as long as people need electricity, a way must be found for the utility to continue to function. The regulatory system determines what prices the utility can charge for the electricity or gas, what profit it’s allowed to make, and whether the costs of its mistakes can be passed along to the customer. Since the state government has a vested interest in the survival of the enterprise,
...more
