Full Title: Investor Expectations on North American Natural Gas Utilities
Author(s): Guidehouse
Publisher(s): Guidehouse
Publication Date: July 12, 2022
Full Text: Download Resource
Description (excerpt):
The American Gas Association (AGA) and the Canadian Gas Association (CGA) engaged Guidehouse to understand current investor sentiment toward North American gas utilities and determine the current investor perceptions of gas utilities as investments. Guidehouse undertook industry-focused interviews and foundational research to develop this report’s findings. The scope of work focused on answering three key questions:
1) How are the gas utilities allowed return on equity (“ROE”) set under the current
regulatory regimes; and
2) Across the US and Canada, are ROEs consistent with investor expectations?
3) What future business opportunities should utilities pursue to maintain investor
attractiveness?
Guidehouse and the Institut de Publique Sondage d’Opinion Secteur (IPSOS) embarked on a first-of-its-kind investor community engagement on the behalf of AGA and CGA, focusing on investors views and perceptions on the investment attractiveness of gas utilities. The key takeaway from the investors interviewed was that gas utilities are attractive investments. Investors interviewed had also indicated that gas utilities are under pressure from various initiatives and policy mandates that are altering the period of time they hold gas utility assets in their portfolios.