During the past decade, J.D. Power and Associates and Standard & Poor's have
examined the relationship between customer satisfaction and key financial metrics
in the electric utility industry, such as profitability and credit ratings. During the same
period, the number of electric rate cases has steadily increased. Due to this increase,
J.D. Power has undertaken an examination of the relationship between customer
satisfaction and return on equity (ROE) in the industry. Similar to profitability and credit
ratings, customer satisfaction has a notable impact on ROE for regulated electric
utilities. This white paper details the findings from these analyses.