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.
In 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.