An obscure group of consultants is helping to drive up U.S. electricity rates

Private utilities have increased residential electricity rates over the past three years at a rate 49 percent higher than inflation.

John Sutter : This translates to $50 billion in excess costs for utility customers every year , or about $300 per household.

He says utilities apply their own bespoke economic logic to win themselves large electricity rate increases.

Sutter says the other side of the table is using the same models and assumptions as those used by utilities.

A new report says utilities are seeing much higher stock growth than one would anticipate for a low-risk industry with tightly regulated, stable profits.

The long-term return for the broader stock market is roughly 6 to 7 percent annually .

Ellis recommends that rate of return/cost of capital standard be codified into law in states so it cannot by avoided.