-1 upvotes, 2 direct replies (showing 2)
View submission: Casual Questions Thread
Appears to be some virtue signaling nonsense. What are "excessive profits"?
The average profits for oil companies over 10 year periods is around 5%. Some years they win big, some years they lose big.
Is California going to penalize them the years they win, and not offset that the years they lose? I seriously doubt it.
Comment by throwaway09234023322 at 28/03/2023 at 17:42 UTC
5 upvotes, 2 direct replies
Idk. The goal is to reduce oil profits and make gas cheaper for Californians. I'm not sure that it will work though. It also seems very targeted when you have many different corporations that you could say are price gouging. Why not go after apple or other tech companies who have much higher profit margins? I guess you could argue that fuel is a necessity while tech isn't.
Comment by bl1y at 28/03/2023 at 16:12 UTC
2 upvotes, 0 direct replies
Excessive is defined by a specific margin set by the state energy commission.
The commission, following a public meeting, is allowed to adjust the margin. So, if there's a really bad year that the companies need to make up for, they're able to take that to the commission and ask for a temporary increase to the cap so they can earn back what they lost.