- The utilities sector (NYSEARCA:XLU) fell twice as hard as the overall S&P in today's trade, and the best guess from Barron's Ben Levisohn in explaining the move is a NYC rate change instituted by New York Independent System Operators.
- UBS analysts say NYISO's summer 2016 capacity prices declined substantially in the NYC Zone-J to $10.99/KW-month from $15.50/KW-month, which the firm attributes primarily to the latest parameters which showed a substantial reduction of in-city requirements; the wider regions continued to clear at relatively comparable levels.
- UBS sees the results as supportive of upstate generators Dynegy (NYSE:DYN) and Talen Energy (NYSE:TLN), but more cautious for NRG Energy (NYSE:NRG) due to the fickle nature of highly-sensitive NYC capacity prices.
- Now read Electric utilities: Powerful uptrend, or 'lights out' for the stocks?