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How Is CMS Energy’s Return on Equity Compared to Its Peers’?

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CMS Energy: Return on equity

CMS Energy (CMS) has consistently obtained an average return on equity (or ROE) of near 13%, largely due to its higher rate base growth. This is significantly higher than the industry average of near 10%.

Authorized ROE is the only part of the revenue requirement that utilities keep for themselves as profit.

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By comparison, American Electric Power (AEP) has one of the most geographically diversified utility operations in the United States and fetches ROE of above 10%. WEC Energy Group’s (WEC) ROE is 12.7%, which is one of the highest levels in the industry.

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