Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report emphasizes the need for regulatory actions to control utility costs amidst an affordability crisis, suggesting that cost trackers are currently overutilized and should be revisited to ensure they do not exacerbate financial burdens on consumers [15][40]. Summary by Sections Introduction - Utility expenditures are rising due to factors like load growth and infrastructure replacement, coinciding with an affordability crisis where many US households struggle to pay energy bills [13]. What Is a Cost Tracker? - A cost tracker is a mechanism allowing utilities to recover specific costs outside of general rate cases, designed to reduce regulatory lag and financial risk for utilities [20][21]. To Tracker or Not to Tracker? - The report argues that while cost trackers can provide revenue certainty, their widespread use can shift financial risk from utilities to ratepayers and lead to increased costs due to reduced oversight [33][34]. Better Managing Cost Tracker Recovery - The report recommends that regulators reassess the use of cost trackers, consolidate unnecessary ones into base rates, and support cost control measures for those that remain [40][41]. Four Regulatory Strategies to Contain Costs Under Cost Trackers - The report outlines four strategies: understanding the size of the problem, reintroducing the risk of disallowance for tracked costs, incentivizing efficient spending, and strengthening the burden of proof for new cost trackers [44]. Understand the Size of the Problem - Regulators should assess the impact of cost trackers on customer bills and establish reporting requirements to monitor their use [45][46]. Reintroduce the Risk of Disallowance for Tracked Costs - By reintroducing elements like spending caps and performance-based recovery, regulators can encourage cost discipline and mitigate excessive spending [51][52]. Incentivize Efficient Spending Under Cost Trackers - Implementing shared savings mechanisms can reward utilities for cost-effective spending, aligning their incentives with cost containment [63].