Direct Answer
42 SEC filers are classified under the Standard Industrial Classification codes that describe the regulated electric utilities industry, and their latest annual reports show $472.3 billion of combined revenue and a median operating margin of 20.3%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Regulated electric utilities supply power in exclusive service territories and earn a return approved by a state regulator on the capital they invest. Revenue is steady, and growth depends on the rate base and the regulator's decisions. The first numbers to compare across companies here are rate base and growth, allowed return on equity and earned return against allowed.
Key Industry Metrics
- Rate base and growth: The value of investment on which regulators allow a return, and how fast it grows. It is the base for earnings, so growth shows future profit potential.
- Allowed return on equity: The profit rate a regulator permits on shareholder capital. It caps earnings from the rate base, so a cut reduces profit and an increase raises it.
- Earned return against allowed: The return actually earned compared with the return approved. A gap shows regulatory lag or cost overruns, and a narrow gap shows the utility is recovering its costs.
- Capital spending plan: Planned investment in grid and plants over several years. It drives rate base growth but also customer bills and financing needs.
- Funds from operations to debt: Cash flow from operations divided by debt. Rating agencies use it, and a falling ratio may signal pressure on credit ratings and borrowing cost.
Primary Macro Drivers
- Rate case outcomes: Regulators decide allowed return and which costs are recovered, so rate cases show in rate base growth and earned return.
- Load growth: New factories, data centers and electric vehicles add sales and justify investment, shown in load growth and capital spending.
- Fuel recovery mechanisms: Mechanisms that pass through fuel and purchased power cost protect margins, but timing delays affect cash and earned return.
- Interest rates: Borrowing finances much of the plan, so rates affect interest cost and the return needed, shown in funds from operations to debt.
Major Risks
- Regulatory lag and disallowances: Costs that are denied or delayed lower earned return below the allowed level; watch earned versus allowed return and disallowances.
- Storm and wildfire liability: Fires and storms can create large claims and costs and prompt new rules; watch wildfire spending, insurance and legislation.
- Financing cost: Higher interest cost and equity needs can pressure earnings and ratios; watch interest cost, equity issuance and ratings commentary.
- Customer affordability: Rising bills can lead to limits on increases and unpaid accounts; watch rate case outcomes, bad debt and arrears.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Defensive |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Regulated Electric Utilities Filers in the SEC Record
42 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 4911, 4931. Their latest fiscal years end between 2025 and 2026, and together they reported $472.3 billion of revenue. Median revenue growth over the prior year was 9.8%. Median operating margin was 20.3% and median net margin 12.2%. Median total liabilities were 71% of total assets, and 38 of 42 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Duke Energy Corp | $31.7 billion | 5.6% | 27.2% | 15.7% | FY 2025 |
| Nrg Energy, Inc. | $30.7 billion | 9.2% | 6.0% | 2.8% | FY 2025 |
| Southern Co | $29.6 billion | 10.6% | 24.7% | 14.7% | FY 2025 |
| Nextera Energy Inc | $25.8 billion | 9.8% | 32.1% | 26.5% | FY 2025 |
| Constellation Energy Corp | $25.5 billion | 8.3% | 12.1% | 9.1% | FY 2025 |
| Pg&E Corp | $24.9 billion | 2.1% | 19.0% | 0.0% | FY 2025 |
| Exelon Corp | $24.3 billion | 5.3% | 21.2% | 11.4% | FY 2025 |
| American Electric Power Co Inc | $21.9 billion | 10.9% | 24.3% | 16.9% | FY 2025 |
The 8 largest of 42 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Regulated Electric Utilities guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Regulated Electric Utilities industry?
Key performance indicators for the Regulated Electric Utilities industry include: Rate base and growth, Allowed return on equity, Earned return against allowed, Capital spending plan, Funds from operations to debt. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Regulated Electric Utilities industry?
The Regulated Electric Utilities industry is generally defensive, meaning demand tends to remain relatively stable regardless of the economic cycle. Companies in this space can provide portfolio stability during recessions, though growth may lag in strong expansions.
What are the biggest risks in the Regulated Electric Utilities industry?
The primary risks for Regulated Electric Utilities companies include: Regulatory lag and disallowances, Storm and wildfire liability, Financing cost, Customer affordability. Investors should assess each company's exposure to these factors and its track record of navigating them.