...Updated ROE Evaluation: Fitch Ratings has updated its evaluation of trends in utility authorized returns on equity (ROEs). The analysis was based on 179 rate determinations for utilities within Fitch's coverage spanning a 36-month period from 2011 to 2013. ROEs Continue to Trend Lower: Fitch's analysis reveals that the median authorized ROE has continued to slowly trend down, with the 2013 median ROE falling to about 10.0%. This compares with a median ROE of 10.25% for 2012 and 10.17% for 2011. Fitch concludes the long-term downward trend of authorized ROEs is stabilizing at or near current levels, with no indications the trend will reverse anytime soon. Regional Variations Exist: Fitch noted regional disparities in authorized ROEs. Median ROEs were highest for utilities serving the south, at 10.05%. Authorized ROEs continue to be lowest in the northeast, with a 9.6% median authorized ROE. The northeast has the highest concentration of utility distribution companies (UDCs). Median authorized...
