Georgia Power Company Received the Highest ROE of Any Electric Utility in 2013


By: Bobby Baker
SNL Financial recently reported that Georgia Power Company received the highest authorized return on equity (ROE) of any electric utility in 2013.  The Company originally asked for an 11.50% ROE in its rate case filing, but was granted a 10.95% ROE.  SNL reported that, “[t]he average authorized ROE for the 38 electric general rate cases (in 2013) was 9.83%.”
In the 2013 rate case decision the Public Service Commission re-authorized the Company to retain excess earnings 100 basis points or 1% above its authorized ROE which effectively gives the Company an ROE of 11.95%.  Pursuant to testimony from the rate case one hundred basis points is approximately $130 million.
The SNL article found that Georgia Power Company had historically exceeded its authorized ROE level.  “Georgia Power earned an ROE of 12.29% in 2013, and has historically earned ROEs in excess of 10%, with 11.57%, 12.7%, and 12.59% ROEs earned in 2010, 2011, and 2012, respectively.”