Mon, Jun. 27, 7:27 PM
- One of the biggest Brexit beneficiaries is the utilities sector, as the Dow Jones Utility Average and the SPDR Utilities Select Sector ETF both surged to new record highs as Treasury yields tumble to multiyear lows.
- The implied annual dividend yield for the Dow utilities is 3.08% and 3.18% for the utilities ETF, more than double the 10-year Treasury yield.
- J.P. Morgan equity strategists said today that they believe bond yields "are not going anywhere but lower,” and thus remain overweight on the utilities sector.
- At least six Dow utilities components posted record closes: NEE +3.3%, EIX +2.5%, AWK +2.4%, ED +1.9%, AEP +1.8%, PCG +0.8%.
- Among other major utilities in today's trade: SO +1.9%, DUK +1.9%, SCG +1.6%, ETR +1.1%, D +1%, AEE +1%, XEL +0.9%, SRE +0.9%, PEG +0.7%, FE +0.7%, EXC +0.6%.
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU
Mon, May 9, 11:58 AM
- Six energy companies announce the official launch of Grid Assurance, an independent company providing transmission sparing solutions for critical electric transmission equipment.
- The company is founded by affiliates of American Electric Power (NYSE:AEP), Berkshire Hathaway (BRK.A, BRK.B), Duke Energy (NYSE:DUK), Edison International (NYSE:EIX), Eversource Energy (NYSE:ES) and Great Plains Energy (NYSE:GXP) to enhance grid resiliency and give electric transmission owners faster access to long-lead time critical equipment necessary to recover from catastrophic events that could impact the U.S. electric grid.
- Michael Deggendorf, senior VP of Kansas City Power & Light, is named Grid Assurance CEO and will oversee the formation and operations of the company.
- Now read WSJ: Utilities seek to store and sell essential parts for disasters
Thu, Apr. 28, 10:33 AM
- FirstEnergy (FE -11.4%) and American Electric Power (AEP -2.5%) are sharply lower after the FERC decides to review income guarantee agreements, which means the deals are not valid unless the two companies apply for and receive federal approval.
- The federal ruling pre-empts the ruling by Ohio's public utilities commission, which had considered for nearly two years plans to raise rates to subsidize some older coal-fired and nuclear power plants before unanimously approving them last month.
- "The decision is a disappointing and unfortunate intrusion by FERC into Ohio’s ability to protect its retail customers from market volatility and plan for the state’s generation needs,” AEP says.
- Competing electric utility Dynegy (DYN +3.3%) praises the FERC decision, saying the proposals accepted by Ohio regulators were "exorbitantly priced."
- Now read FirstEnergy beats by $0.05 and American Electric Power misses by $0.03, misses on revenue
Thu, Apr. 28, 7:02 AM
Wed, Apr. 27, 5:30 PM
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Tue, Apr. 26, 12:57 PM
Fri, Apr. 22, 10:57 AM
- The Ohio Supreme Court yesterday upheld a pricing structure for fees that competitors must pay to American Electric Power (AEP +0.6%), while rejecting part of another fee the company had imposed as part of its transition into a competitive power market.
- The court sided with a 2012 decision by Ohio's Public Utilities Commission to set the fee at $188.88/MW-day, which AEP argued was too low to recover its actual costs to provide capacity, or the cost of maintaining a generating plant.
- AEP says the reassessment probably will not significantly affect customers’ bills and will have “minimal” impact on the company’s finances.
- Now read American Electric Power: Stay wary of that valuation
Fri, Apr. 8, 5:36 PM
- Some of the largest U.S. utilities are joining forces to stockpile critical pieces of electrical equipment that can be rushed to power companies if they are hit by terrorist attacks, earthquakes or other disasters that could cause extended blackouts, WSJ reports.
- American Electric Power (NYSE:AEP), Exelon (NYSE:EXC), Southern Co. (NYSE:SO), Edison International (NYSE:EIX) and Eversource Energy (NYSE:ES) are funding the creation of a new Delaware company, Grid Assurance, which plans to store circuit breakers, large transformers and other crucial parts at secure, unidentified locations, and then sell them to participating utility companies that need them during emergencies.
- The participants estimate, for example, they will need at least 100 transformers, often costing $2M-$10M each, so the venture will be expensive but far less costly than a major blackout.
- “The last thing we want is for someone to do a physical attack and wipe out our spares, too,” says Scott Moore, VP of transmission engineering at AEP.
- Now read At the dividend dance, it's time to change partners - buy old biotech, sell utilities
Thu, Mar. 31, 3:13 PM
- Ohio's Public Utilities Commission approves a pair of deals that allow FirstEnergy (FE +0.6%) and American Electric Power (AEP +0.6%) to impose short-term rate increases on electricity customers to subsidize some older coal-fired and nuclear power plants.
- The regulator accepted the companies' arguments that seven coal plants and one nuclear plant should be subsidized by ratepayers because the benefits outweigh the potential costs.
- Opponents say they will appeal the decision, first to the PUC itself and then the Ohio Supreme Court and federal courts; objections already have been filed with the FERC, arguing that the special deals violate federal rules on utility competition.
Thu, Feb. 25, 12:58 PM
- Executives from American Electric Power (AEP +1.2%) and Xcel Energy (XEL +1.1%) both say they believe a federal crackdown on carbon emissions is coming sooner or later, regardless of whether Pres. Obama's Clean Power Plan holds up in court.
- "Carbon regulation is not going away," AEP's manager of strategic policy analysis tells the IHS CERAWeek conference in Houston, saying his company is still moving ahead to figure out the best way to comply.
- States such as Texas and West Virginia, which have led legal opposition to Obama’s plan, take the Supreme Court’s recent decision as a sign the rule ultimately will be struck down, while states including Massachusetts, Arizona and Virginia have said they will move ahead anyway.
- The current situation causes uncertainty for utilities that operate across multiple states; for example, Xcel must balance policies in Minnesota, which leans toward expanding clean energy, against those in Texas.
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, SDP
Thu, Jan. 28, 7:06 AM
- American Electric Power (NYSE:AEP): Q4 EPS of $0.48 misses by $0.02.
- Revenue of $3.6B (-5.3% Y/Y) misses by $300M.
Wed, Jan. 27, 5:30 PM
- ABT, ACAT, ADS, AEP, AIT, AN, ARG, AUO, AVT, BABA, BANC, BC, BHI, BLL, BMS, BMY, BOFI, BX, CAT, CELG, CHKP, CLFD, CRR, CSH, CY, DGX, DLX, DST, EPD, EXTR, F, FCFS, FCS, FLWS, GLOP, GNTX, HAR, HCA, HGG, HOG, HP, HSY, HUBB, INGR, IVZ, JBLU, JCI, KEM, LEA, LLL, LLY, LRN, MITK, MJN, MKC, MMYT, MO, MTH, NDAQ, NEE, NOC, NTCT, NUE, ORI, OSK, PHM, POT, RDN, RGS, RTN, SHW, SWK, SXC, TCB, TGI, TMO, TROW, TWC, UA, UBSI, VLO, WCC, WRLD, XEL, ZBH
Mon, Jan. 25, 2:51 PM
- American Electric Power (NYSE:AEP) declares $0.56/share quarterly dividend, in line with previous.
- Forward yield 3.86%
- Payable March 10; for shareholders of record Feb. 10; ex-div Feb. 8.
Mon, Jan. 25, 11:18 AM
- EnerNOC (ENOC +53.1%) surges more than 50% after the U.S. Supreme Court upholds a federal rule that pays large users to conserve power.
- The Court says the FERC acted within its authority with its Demand Response Rule, which helps large consumers reduce their power use.
- "This case has been an overhang for the industry of demand response for a number of years, so to have a final resolution at the highest court in the land is a huge victory," ENOC President David Brewster tells Bloomberg.
- U.S. power producers that sell into competitive markets such as include NRG Energy (NRG -6.7%), Exelon (EXC -2.1%), Dynegy (DYN -9.1%), Calpine (CPN -5.7%) and American Electric Power (AEP -0.9%) would have benefited if the rule was eliminated.
Dec. 14, 2015, 6:37 PM
- American Electric Power (NYSE:AEP) says it reached agreement with Ohio regulators, environmental groups and other parties for long-term contracts with its coal-fired generators.
- The stipulated agreement, expected to be ruled on by the state's Public Utilities Commission in early 2016, would require AEP Ohio to enter into an eight-year power purchase agreement for the capacity, energy and ancillary service output of AEP's 2,671 MW ownership share of nine generating units and AEP Ohio's 423 MW contractual share of Ohio Valley Electric generation.
- The deal essentially allows AEP to subsidize revenues for its coal-fired power units in exchange for eventually shutting down or converting some of those units to gas and building new renewable energy projects, Bloomberg reports.
- Power producer Dynegy (NYSE:DYN), which owns generation units that compete with plants owned by AEP and FirstEnergy (NYSE:FE), says the pact supports “anti-market" subsidies with costs borne by Ohio residents and businesses in favor of AEP shareholders.
Dec. 9, 2015, 3:13 PM
- The bank's team is fairly aggressive in their expectation of rate hikes, seeing a 25 basis point move next week and another 100 basis points by the end of 2016.
- The cycle, they say, most closely resembles that of 2004, and regulated utilities outperformed the broader market by 6% and 18% in the three and 12 months following the first hike that year.
- As for this particular moment, Barclays says a flattening yield curve, increasing high-yield default rates, and a strong greenback impacting S&P earnings relative to utilities all bode well for the sector.
- The team's favored picks: NextEra Energy (NYSE:NEE), American Electric Power (NYSE:AEP), Entergy (NYSE:ETR), Xcel Energy (NYSE:XEL), and PG&E (NYSE:PCG).
- Utility ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, SDP, FUGAX
American Electric Power Co., Inc. is a public utility holding company that engages in the business of generation, transmission and distribution of electricity. It operates through following segments: Vertically Integrated Utilities, Transmission & Distribution Utilities, AEP Transmission Holdco,... More
Industry: Electric Utilities
Country: United States
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