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Utility Work markup Limit?

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New member
Are there any limitations on the markup that a utility can charge on material for doing work like meter relocation?

Doing some RE consulting for a client involved in a value-added industrial investment in Miss.
Utility company quoting 65% markup on materials (25% for E&S, 20% for Minor Mat, 20% for Material Handling).

Have never seen such a high markup even in unregulated private industry and generally utilities are highly regulated.
I am thinking even IRS may have some regulation on how much maximum mark up on materical can be.

Please help with your knowledge. Appreciate your time.


Senior Member
No, I don't imagine that there are any limits.

Whatever a utility company can do, should be able to be done by private contractors. If your client doesn't like the charges he's free to seek bids from other contractors.


Senior Member
Here is a link to Mississippi’s Public Service Commission:


You can click on Ratepayers’ Bill of Rights and check out Right 11, negotiating installment fees for initial service, and Right 16, on information on price and services.

Are you concerned about the markup on electric service or other utility services?


Senior Member
I am thinking even IRS may have some regulation on how much maximum mark up on materical can be.
Why would you think the Internal Revenue Service has anything to say about it?

If there is such a law, which I doubt there is in a nonresidential situation, it would be under your state's public service commission. As @quincy pointed out.

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