Distinguishing ROE and cost of equity

Utilities and their regulators are often protected by a "force field of tedium," but in this episode, I pierce the veil to discuss the complex machinery of utility profit-making. I’m joined by Joe Daniel of RMI to unpack the critical distinction between "return on equity" and "cost of equity," and why the former is almost always higher than necessary. We discuss how regulators can close this gap to lower consumer costs without hindering essential grid upgrades.

This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.volts.wtf/subscribe