No. In theory, that new gas plant is "planned" and replacing aging capacity, while meeting expected demand. Rates are separate. Many power utilities are gran

No. In theory, that new gas plant is "planned" and replacing aging capacity, while meeting expected demand. Rates are separate. Many power utilities are granted a monopoly, especially the transmission (high voltage, long distance) and distribution ("last mile" / neighborhood wires) horizontals as they're true natural monopolies. In exchange for that concession, their profits are capped. The cap is a function of their "rate base" -- i.e. qualifying capex -- and an approved rate. These rates are adjusted periodically, requiring public utility commission (State) or FERC (federal) rate setting sessions. For example, "Total Revenue Requirement = Rate Base [assets] × Allowed Rate of Return + Expenses" [0] Without having looked into this, it's easy to over-estimate how easy (hard) life as a public utility is. [0] http://blog.aee.net/how-do-electric-utilities-make-money http://blog.aee.net/how-do-electric-utilities-make-money