Stan Geiger

Free Electricity: Is that Possible?

Is free electricity possible? Probably not, in a general sense. I mean even if all power was generated by, say, free wind, infrastructure and employees would still be needed. A charge would be necessary to cover the costs of such things.

But for you, as an individual, free electricity is quite possible. All it takes, ironically, is money.

AEP---PSO's parent---pays an annual cash dividend of $1.64 per share. So a shareholder that owns 2,000 shares gets paid $3,280 per year in cash. Said shareholder could consume an average of $273 per month in electricity and, in a real sense, pay nothing for it. Pay your monthly bills, then wait for the kickback.

Anybody that owns enough power company stock can get free electricity. Me, you, anybody. So why doesn't everybody go for it?

Well, there's a turd in the swimming pool for average folks. AEP stock is currently selling for about $43 per share. Buying 2,000 shares would run you over $86,000. Most people don't have 86 large they don't need lying around.

Rich folks, on the other hand, can afford to buy all the power company stock they need in order to cancel out their electric bills and get the stuff for free. In fact, they can afford to buy enough stock to get more in cash dividends from the power company than they send in for electricity.

It works a lot like that sweetheart deal the rich folks and the politicians have in place. The government floats debt, rich folks buy it, and, ba-da-bing, all of the sudden the rich folks have no tax burden. Everything they pay in taxes gets kicked back in the form of interest.

In effect, AEP is fleecing the sheep and the rich folks are getting the wool. Sweet deal---if you're on the right end of it.

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