Sustainable Utility Regulation and Socio-Economic Success
- Details
-
11 Jul 2012
by Richard J. Rudden
Institutional investors are increasingly looking to invest in companies that embrace sustainable practices. Given the trillion-dollar investment that utilities must make to modernize our electric infrastructure, both regulators and utilities should embrace the opportunity this development presents.
I
n early 2009, during the throes of our recent Great Recession, it was suggested that state regulators had a great opportunity to facilitate economic recovery and restore the retirement portfolios of perhaps millions of middle-income investors through more progressive return on equity policies. The same opportunity exists today, but even more so. With approximately $2 trillion of utility and energy industry capital expansion expected by 2035, the potential for regulators to make an even greater impact on our economy and society is significant.