How do IOUs work?

The IOUs run similarly to for-profit companies: they generate revenue through selling goods and services, resulting in high profitability. Utilities use this money to cover costs, such as plant maintenance, salaries, marketing, and other operating expenses. Prices of these services are often regulated by state laws or public utility commissions.

What are investor-owned utilities (IOUs)?

Investor-owned utilities (IOUs) work like for-profit corporations and are publicly or privately owned by shareholders. Common IOUs include electricity, natural gas, water, and sewage companies. According to the U.S. Energy Information Administration (EIA), IOUs served 72 percent of U.S. electricity customers in 2017.

What does IOU financial do?

IOU Financial, Inc. operates an internet-based lending platform. It engages in lending capital to small businesses, which include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, restaurants and hotel franchises, and e-commerce companies.