Florida, Texas and FERC Issue New Utility ROE Determinations
Recent regulatory orders establish new return on equity benchmarks for utilities across Florida, Texas, and FERC jurisdictions.
Florida regulators have set a consistent return on equity (ROE) of 8.51% for two separate utility dockets [1, 2]. In docket 20250084, Gulfstream received an authorized ROE of 8.51% with an overall rate of return of 8.51%.
A second Florida determination in docket 20250094 also established an ROE of 8.51%. This determination applies to a capital structure consisting entirely of common equity.
In Texas, Oncor Electric Delivery Company, LLC was authorized for an ROE of 9.75% in docket 58306. The company will utilize a regulatory capital structure of 43.5% equity and 56.5% long-term debt.
FERC has issued several determinations involving RTO participation adders. Platte River Power Authority received an overall ROE of 10% following the grant of a 50 basis point RTO Adder for its participation in SPP [4, 5].
Similarly, Deseret received an authorized ROE of 9.56% in FERC docket ER26-1137-000. This figure includes a 50 basis point adder for its participation in the Southwest Power Pool.