equity

Equity Returns: ‘Allowed’ vs. Earned

Understanding how PUC rate case findings differ from a utility’s financial reports.

 

(November 2015) Setting an allowed return on equity has consistently proven to be the most contentious and subjective part of a rate case proceeding.

The Fortnightly 40 Best Energy Companies

The industry’s transformation has begun. Should the F40 transform too?

(September 2014) Our annual ranking of shareholder performance tracks the long-term returns of leading utilities. But can it predict success in a transformed energy market?

SunEdison, Nationwide Mutual, Sol Systems and National Bank of Arizona Announce Financing for 13.4 MW Solar Electricity Portfolio

SunEdison, along with Nationwide Mutual Insurance Company, National Bank of Arizona (NBAZ), and Sol Systems announced a $50 million fund to build a 13.4 MW solar portfolio for the State of California prison and hospital systems. Sol Systems advised Nationwide Mutual Insurance on the acquisition of the equity in the transaction. SunEdison secured long-term debt for the projects from the National Bank of Arizona (NBAZ).

A Trip to RIIO in Your Future?

Great Britain’s latest innovation in grid regulation.

Great Britain’s electric regulator takes performance-based regulation to a new, more complex level, weighing policy choices against attendant costs.

Bargain or Bonanza

Is discounted cash flow (DCF) still a reliable tool for determining equity cost?

The time-honored discounted cash flow method for determining appropriate utility returns falls short when interest rates are low. Inadequate ROEs ultimately increase cost of capital and wipe away any temporary savings.

Last Call

Utilities are enjoying some of the best financing terms anybody’s ever seen. Is the party winding down?

Conditions are ideal for utility financing—but not forever. Although interest rates remain low, policy changes weigh on capital structures.

Dividend Double-Take

What happens when the Bush tax cuts expire?

Congress again is embroiled in another hyper-partisan food fight that threatens to blow up into a fiscal crisis. And once again dividend-paying companies like utilities are caught in the crossfire.