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.
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.