Electric utilities generate, transmit, and distribute electricity to residential, commercial, and industrial customers under regulated monopoly frameworks. Regulators allow utilities to earn a fixed return on their rate base (infrastructure investment), creating predictable earnings and dividends. Electric utilities are experiencing a historic investment supercycle driven by data center power demand, EV charging infrastructure, grid hardening against weather events, and the integration of renewable energy. This is forcing rate base growth rates to accelerate significantly.
Rate base growth guidance (typically 5-8% annually for well-run utilities). Regulatory ROE allowed by state commissions vs. industry benchmark of 10-10.5%. Data center load growth announcements in service territories — game-changing for utilities with large tech company footprints. Dividend payout ratio and EPS growth trajectory.