May. 27, 2014, 2:30 PM
- The utility sector is among the day's best performers after the annual capacity auction at PJM Interconnection, which runs the largest U.S. power grid, forecasts payments to electricity producers will jump to $120/MW-day vs. $59.37 in the previous 12-month period and expectations of $75-$100.
- The higher capacity price is a boon to power producers, which rely on the payments as baseline revenues; the auction results are viewed as another endorsement of natural gas.
- The outlook is particularly favorable for Exelon (EXC +3.9%) and FirstEnergy (FE +6%), according to S&P's Aneesh Prabhu; PPL Corp. (PPL +2.9%) also benefits, especially considering that the price in its region was expected to fall.
- The price for Public Service Electric & Gas' (PEG -0.2%) utility territory in northern New Jersey was set at $215/MW-day, down from $219 a year earlier.
- ETFs: XLU, IDU, VPU, DBE, RJN, UPW, FUTY, RYU, PUI, FXU, JJE, SDP, ONG, RGRE, UBN
May. 23, 2014, 6:35 PM
- Regional transmission organization PJM says its recent auction to procure power supplies for 2017-18 resulted in a clearing price for resources - which includes generation, annual demand response and energy efficiency - which rose to $120/MW-day for most of its deliverability area.
- PJM, which coordinates the movement of wholesale electricity in all or parts of 13 states and D.C., says the auction continued an overall trend toward more gas-fired generation and increasing diversity of resources.
- PPL, Exelon (EXC), American Electric Power (AEP), Duke Energy (DUK), Dominion Resources (D) and FirstEnergy (FE) are all up ~1% AH.
- Earlier, Barclays downgraded the entire electric sector of the U.S. high-grade corporate bond market to underweight, saying it sees long-term challenges to electric utilities from solar energy which aren't yet priced in.
- ETFs: XLU, LQD, IDU, VPU, CORP, CFT, UPW, FUTY, RYU, FXU, QLTA, SDP, IGHG, COBO, IGS, CBND, IGU, QLTB
May. 16, 2014, 5:03 AM
- The White House is considering forcing power plants to cut carbon emissions by 25% over a 15-year period, Bloomberg reports.
- The problem is that owners can only cut so much of a facility's emissions by increasing efficiency, so a lot of the reduction could have to come by "going outside the fence," such as by deepening the use of renewable energy, improving grid efficiency and encouraging customers to use less electricity.
- Trying to compel operators to rely on such external measures could run afoul of what the government is allowed to do under the Clean Air Act.
- ETFs: KOL, XLU, IDU, VPU, RYU, PUI, UPW, FXU, SDP, PSCU, FUTY, UTLT
- Coal Tickers: PCXCQ, BTU, WLT, CNX, ACI, ANR, JRCC, YZC, ARLP, AHGP, NRP, PVR, PVG, PVA, OXF, CLD, WLB, RNO
- Utilities: ED, POM, PEG, FE, NST, UTL, ETR, EXC, D, NU, PCG, DUK
May. 8, 2014, 8:44 AM
- FirstEnergy (FE) +3.8% after Jefferies upgrades shares to Buy from Hold and raises its target price to $37 from $31 despite Q1 earnings that fell by nearly half from the prior-year quarter.
- January shutdowns of two large power plants amid icy weather and the inability to buy gas forced FE to buy power on the regional grid as wholesale market prices were soaring; power purchases over the quarter cut EPS by $0.23.
- In its upgrade, Jefferies says it views FE as a regulated utility with a free option on recovery of power prices; the firm expects merchant free cash flow to be positive by 2017 while providing only a nominal contribution to EBITDA and earnings.
May. 6, 2014, 8:32 AM
May. 5, 2014, 5:30 PM
- ACM, ACOR, AER, AKRX, AME, ARCC, ARCO, ARW, BCE, BCS, CBOE, CNK, COCO, CRTO, CRZO, CYNO, DISCA, DNR, DTV, DWRE, EMR, EXH, EXLP, FE, GDP, GLDD, HCP, HFC, HPT, HSH, HSIC, HTH, IFF, ISIS, KWK, MMP, MNTA, MONT, MOS, MPW, MSO, MVIS, MWIV, NRG, [[NTi]], NUS, ODP, OXF, PDCE, PQ, PRIM, RDC, RHP, RTI, RTRX, STWD, TDG, TGH, TPH, TW, UBS, VMC, VSH, VTG, WCG, WNR, XRAY, ZBRA, ZTS.
Mar. 18, 2014, 1:52 PM
Feb. 25, 2014, 9:56 AM
- FirstEnergy (FE -1.6%) swung to a Q4 profit but revenue missed expectations and the power company issued downside guidance for Q1 earnings.
- FE says Q4 operating earnings benefited from higher distribution revenues, higher regulated generation operating margin, and increased investment income and lower interest expense compared to the prior-year period.
- Q4 distribution deliveries rose 4% Y/Y, largely due to colder temperatures compared to the year-ago quarter, which drove a 3% increase in sales to both residential and commercial customers.
- Sees Q1 EPS of $0.35-$0.45 vs. $0.63 analyst consensus estimate, but issues in-line guidance for FY 2014, seeing EPS of $2.45-$2.85 vs. $2.69 consensus.
Feb. 25, 2014, 8:32 AM| Comment!
Feb. 25, 2014, 12:05 AM
Feb. 24, 2014, 5:30 PM
Feb. 19, 2014, 11:31 AM
- FirstEnergy (FE +1.6%) says it plans to spend more than $475M this year to improve the infrastructure for its Ohio electric utility, more than double last year's improvements in the Ohio Edison service territory which covers more than 1M customers.
- FE says it will build new substations, begin work on a new 100-mile transmission line and install new technology in its facilities, among other things; ~$344M will go toward transmission-related projects built and owned by FE entity American Transmission Systems.
Jan. 21, 2014, 5:43 PM
- FirstEnergy (FE) -1.7% AH after offering 2014 earnings guidance that was mostly lower than analysts' expectations.
- FE says it expects FY 2014 operating EPS of $2.45-$2.85 vs. $2.82 analyst consensus and narrows 2013 operating EPS guidance to $2.95-$3.05 vs. $2.97 consensus and prior $2.90-$3.10.
- Also cut its quarterly dividend to $0.36/share after paying $0.55/share since 2008.
Jan. 21, 2014, 4:13 PM
Jan. 15, 2014, 8:22 AM
- FirstEnergy (FE) has agreed to work towards cutting its carbon emissions following pressure from shareholders, including the New York State and Connecticut pension funds,
- As a result, investors will drop a related resolution they had filed for the electricity utility's annual meeting this year.
- The pressure from the stockholders is part of a growing movement among some investors to try to force companies to address climate issues.
- The question is whether First Energy's pledge will represent anything more than hot air and smoke.
Jan. 3, 2014, 7:57 AM| 1 Comment
FE vs. ETF Alternatives
FirstEnergy Corp FirstEnergy Corp. is the holding, directly or indirectly, of all of the outstanding common stock of its principal subsidiaries. It is a diversified energy company dedicated to safety, reliability and operational excellence.
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