Energy Environmental Blog

Utility Return on Equity

Written by Vorys | Dec 10, 2008 9:03:59 PM

The American Gas Foundation:  "The continued success of the utility sector to deliver natural gas safely and reliably depends on a strong and viable infrastructure that will meet growing local distribution company (LDC) customer demands.  The infrastructure development needed to address new and aging infrastructure relies heavily upon the ability of the industry to attract strong capital investment."  A report commissioned by the Foundation concludes, in part, that financial markets view allowed returns on equity below 10-percent as a "red flag" that could turn away investment.  A copy of the full report can be found here.