Fri, Jul. 15, 12:18 PM
- PG&E (PCG +0.3%) is upgraded to Outperform from Sector Perform with a $71 price target, raised from $60, at RBC Capital, which expects the stock's valuation gap vs. peers to continue closing as investors become more comfortable with the company following the measures it took in the wake of the San Bruno tragedy.
- RBC notes that PCG trades at a 6% discount to the regulated peer group P/E despite the firm's view that the utility warrants a premium due to its prospects for delivering respective 5% and 9% annual EPS and dividend growth.
Wed, Jul. 6, 3:22 PM
- SunPower (SPWR +3.4%) is higher after announcing a deal to sell a controlling equity interest in the 102 MW Henrietta Solar Project in southern California to Southern Co. (SO +0.2%) for an undisclosed amount.
- SPWR began construction on the project in May 2015 and is expecting to complete work by the end of the year.
- PG&E (PCG +0.6%) will purchase the electricity and associated renewable energy credits generated by the facility under a 20-year power purchase agreement.
- The project will integrate several unique innovations such as robotic cleaners for the solar panels that use 75% less water than traditional cleaning methods and can help improve system performance by up to 15%.
- SPWR also enjoys a boost from a UBS upgrade to Buy from Neutral, which says the stock's recent pullback is overdone.
Wed, Jun. 29, 1:02 PM
- PG&E's (PCG +0.1%) plan to close the Diablo Canyon nuclear plant in 2025 received a boost yesterday when the California State Lands Commission awarded the utility a new lease to keep the plant running without first requiring a lengthy environmental review.
- PG&E's agreement last week to close the plant when its federal operating licenses expire in 2025 and replace it with power storage and renewable resources such as the sun and wind rests on the company having years to plan the transition and line up contracts; without a new lease from the Lands Commission, Diablo Canyon could have been forced to shut down abruptly in 2018.
- California Lt. Gov. Newsom agreed that ample time for planning is essential, citing the sudden shutdown of the San Onofre plant in southern California in 2013 that sent the state scrambling for replacement power, which included mostly gas-fired capacity that increased carbon emissions.
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
Wed, Jun. 22, 2:55 PM
- PG&E’s (PCG -0.4%) plan to shut California’s Diablo Canyon nuclear power plant by 2025 would cost $15B if all its output is replaced with solar-generated electricity at current prices, according to a Bloomberg analysis.
- Actual costs could be lower because PG&E expects to compensate for lower demand and replace only part of the production, but the multibillion-dollar estimate underscores the costs that utilities and consumers face across the U.S. as power generated by cheaper plants overwhelms nuclear replacement costs.
- Diablo Canyon’s two reactors account for 20% of annual power production in PG&E’s territory; based on current prices and generating capacity for solar power, the company would need 10,500 MW of new solar installations to replace all of Diablo Canyon’s output, Bloomberg calculates.
- The report notes that gas power plants likely would be needed for backup when wind and solar plants are not available, and greater use of natural gas may make California’s goal to get half the state's power from carbon-free sources by 2030 more challenging to meet.
Tue, Jun. 21, 2:39 PM
- Pacific Gas & Electric (PCG +0.3%) reaches an agreement with labor and environmental groups to withdraw its application to renew the nuclear licenses for the Diablo Canyon Power Plant in San Luis Obispo County.
- PG&E agrees to shut down one of Diablo Canyon’s reactors in 2024 and its second reactor a year later, thus closing California's only functioning nuclear power plant by 2025 and replacing it with a new portfolio of energy efficiency, renewable energy and energy storage to make up the lost production.
- PG&E says replacing Diablo Canyon with renewable power will cost less than relicensing the nuclear plant and operating it through 2044, citing the decline in the cost of renewables.
- The company says it will commit to having 55% of its energy portfolio produced by renewable energy sources by 2031, a standard that is higher than California’s targeted goal.
Mon, May 23, 3:49 PM
Mon, May 23, 11:19 AM
- PG&E (PCG +0.6%) declares a new annual common stock cash dividend of $1.96/share, a 7.7% increase from the current annual $1.82 dividend, and adopts a new annual common stock cash dividend of $976M, up from the current annual cash dividend of $716M.
- PG&E also adopts a new target dividend payout ratio range of 55%-65%, with target to reach payout ratio of ~60% by 2019.
- The company also forecasts ~$5.6B in total 2016 capital spending to fund continued enhancements in its gas and electric systems.
Wed, May 4, 9:21 AM
Tue, May 3, 5:30 PM
- AFAM, ARCC, ARCO, ARQL, ASC, ATRO, AVA, AYR, BDC, BUD, CDW, CHH, CLH, CPK, CRK, CRL, CRTO, CRZO, CSTE, D, DLPH, DNOW, ECYT, EE, ENR, FUN, GEL, GNRC, GTE, HAIN, HE, HFC, HSC, HSNI, HTWR, HYH, ICE, INXN, IONS, IRT, KATE, KLIC, LGND, MEMP, MFA, MMP, MOS, MPW, MTOR, NBL, NGS, NJR, NRZ, NVMI, NXTM, OMF, ONCE, ORBK, PCG, PCLN, RDC, RDS.A, SBGI, SCMP, SE, SERV, SHOP, SMP, SPAR, SR, SRE, SSTK, STRA, TGH, TGI, TMHC, TREE, TWX, VIRT, VOYA, VSI, WD, WIX, ZTS
Fri, Apr. 29, 3:03 PM
- Low volatility stocks are besting the broader averages this year, with the SPLV up 3% and the USMV up 4% vs. the 0.7% advance for the S&P 500.
- While the consumer staples that make up much of the low vol names are expected to do well in the rocky times seen in 2016, at 21x earnings, they're getting pricey.
- Picking through individual names though, Barclays' Jonathan Glionna has come up with a list of low volatility names which can still be deemed not expensive.
- In consumer staples: AutoZone (NYSE:AZO), Darden (NYSE:DRI), Time Warner Cable (NYSE:TWC), Clorox (NYSE:CLX), Coca-Cola (NYSE:KO), CVS, Hormel (NYSE:HRL), J.M. Smucker (NYSE:SJM).
- In utilities: Entergy (NYSE:ETR), PG&E (NYSE:PCG), PPL.
Thu, Mar. 17, 4:37 PM
- California regulators award more time for the struggling Ivanpah solar plant to generate the electricity it is required to produce under contracts with PG&E (NYSE:PCG).
- The California Public Utilities Commission today approved without discussion forbearance agreements that would give the owners of the plant, NRG Energy (NYSE:NRG), BrightSource Energy and Alphabet's Google, up to a year to work out the problems.
- PG&E’s California utility had asked the PUC to approve the agreements, saying the plant otherwise would be in danger of shutting down if it failed to meet contractual requirements.
- The plant, located ~50 miles southwest of Las Vegas in California’s Mojave Desert, cost ~$2.2B and received ~$1.5B in federal loans.
Thu, Mar. 17, 10:17 AM
- PG&E (PCG +0.4%) says the U.S.-backed $2.2B Ivanpah solar project in California may have to shut down if it does not receive a break from state regulators, because it is not producing the electricity it is contractually required to deliver.
- The unconventional solar-thermal project - owned by NRG Energy (NRG +0.7%), BrightSource Energy and Alphabet's Google, and financed with $1.5B in federal loans - so far has failed to produce the expected power.
- PG&E wants permission from the California Public Utilities Commission to overlook the shortfall and give Ivanpah another year to sort out its problems, warning that allowing its power contracts to default could force the facility to shut down.
- The extension request is opposed by some consumer groups, who say the cost of the electricity from the struggling plant is exorbitant.
Thu, Feb. 18, 9:20 AM
Wed, Feb. 17, 6:04 PM
Wed, Feb. 17, 5:30 PM
- AAN, AAWW, AGIO, ALE, BCC, CAB, CBB, CHH, COT, CVI, CVRR, DAN, DISCA, DISH, DNR, DUK, EIGI, ETR, GEL, GOV, H, HCN, HII, HOT, IDA, IDCC, IQNT, IRT, LDOS, LH, MFA, MGM, MNTA, MPEL, MTRN, MZOR, NHI, NI, ONE, PAAS, PCG, POOL, PPP, PRGO, RS, SCG, SIX, SODA, SYNT, TK, TNK, TTC, UAN, UPL, VA, VAL, WAB, WM, WMT, WST
PG&E Corp. operates as an energy-based holding company. The company conducts its business principally through its primary operating subsidiary, Pacific Gas & Electric Co., a public utility operating in northern and central California. The utility engages in the sale and delivery of electricity... More
Industry: Diversified Utilities
Country: United States
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