Which U.S. Utilities Are Investing in Clean Energy the Most?

Which U.S. Utilities Are Investing in Clean Energy the Most?

Decarbonizing the power sector will require significant investments in clean energy as utilities replace existing fossil fuel infrastructure. 

In this graphic, we show which U.S investor-owned utilities (IOUs) have allocated the most capital expenditure (CAPEX) toward clean energy. 

The data comes from the latest edition of the Annual Utility Decarbonization Index, created in partnership with the National Public Utilities Council, which quantifies and compares the status of decarbonization among the largest U.S. IOUs. 

The Carbon-Free Investment Ranking

The Utility Decarbonization Index ranks companies on six metrics based on the latest available data, specifically those that pertain to their fuel mix, carbon emissions, and decarbonization goals. 

The sixth and final metric measures the share of each utility’s planned CAPEX for carbon-free electricity generation, such as nuclear power and renewables. 

Here are the top scorers out of the 47 IOUs included in the report.

Rank of Company CompanyShare of Planned Generation CAPEX
Allocated To Nuclear & Renewables

#1NextEra Energy100%

#2Public Service Enterprise Group100%

#3Avangrid100%

#4Pacific Gas and Electric*96%

#5Alliant Energy94%

#6National Grid93%

#7AES Corporation92%

#8Constellation Energy90%

#9WEC Energy90%

#10Emera86%

#11Dominion Energy*84%

#12American Electric Power83%

#13TransAlta81%

#14MGE Energy78%

#15Duke Energy68%

#16Evergy68%

#17DTE Energy Company67%

#18Fortis Inc.67%

#19Consumers Energy66%

#20Southern Company63%

*Planned CAPEX unreported, shows 2022 realized CAPEX

Avangrid climbed to first place in 2022, tying with NextEra and PSEG, who both maintained their 100% carbon-free investment plans from 2021. This marks an improvement from Avangrid’s 98% the year prior.

Meanwhile, National Grid pulled off the most significant percentage increase, from 3% to 93% from 2021 to 2022. 

Overall, carbon-free investment is up 3 percentage points year-over-year from 63% to 66% for the top 47 IOUs.

Which Utilities Are Included in the Decarbonization Index?

The IOUs ranked in this year’s Utility Decarbonization Index are the 47 largest in the U.S. by their 2022 net owned and purchased electricity generations.

U.S. IOUs that had fewer than 2 million megawatt-hours (MWh) of owned generation were excluded from the report. 

The 47 IOUs featured in the Index accounted for over two-thirds of the nation’s electricity generation in 2022. As a result, these utilities’ decarbonization efforts will significantly impact the 33% of U.S. emissions that come from the power sector.

Download the 2024 Annual Utility Decarbonization Report

In addition to the Decarbonization Index, there’s much more to explore in the 2024 report, including:

Inflation Reduction Act impacts

Market trends

Year-to-year progressions

Fuel mix rankings for the largest public utilities

Gas utility emissions rankings 

Are you interested in seeing the rest of the rankings? Download the 2024 NPUC Annual Utility Decarbonization Report now.