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Oct 14, 2026 57 min

The case for lower utility profits

from Energy Capital Podcast Hosted by Joshua Rhodes and Nate

On this week’s Energy Capital Podcast, Joshua Rhodes talks with Ellis, now research director at MarketClear Utility Policy Research and an expert witness for consumer groups in rate cases. They discuss why the gap persists and how an auction could close it. Chapters 00:00 – Introducing Mark Ellis 00:57 – How utilities make money 07:08 – From Sempra insider to utility critic 12:53 – What makes a return fair 17:56 – The math behind a 6 percent return 22:39 – Lower returns and credit ratings 28:08 – Walking through a $10 billion project 33:15 – What utility stock prices reveal 36:49 – Why regulators keep returns high 42:12 – Letting investors bid: the MarketClear auction 45:11 – Who would invest, and how much 50:09 – How the utility business would change 54:12 – Why utilities resist non-wires alternatives This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.texasenergyandpower.com/subscribe

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The case for lower utility profits

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This episode was published on October 14, 2026.

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