Pure play electric utilities are utilities that are essentially all regulated electric companies as opposed to utilities that provide both gas and electric service or even have significant other operations (e.g., wholesale renewable energy businesses, energy trading, etc.). Like most utilities these companies often pay a significant portion of their net income in dividends and subject to the jurisdiction of a state utility commissions that are responsible for setting their allowed returns on equity and defining the amount of leverage used for calculating equity value. These commissions effectively set guardrails around the utility’s profitability. It