Utility analysts at Credit Suisse list their top utility stocks, preferring exposure to power generation opportunities than the risk of spiking power prices faced by retailers.
The cold start to winter has led to spiking power demand and prices in the Northeast/Mid-Atlantic and parts of the Midwest that are well above recent years, opening up some earnings upside potential for competitive generators, the report says.
Nuclear power plant operators won a significant victory yesterday when the D.C. Circuit Court of Appeals said the U.S. should stop collecting $750M/year for a spent-fuel repository it has never built.
The decision could force the Obama administration to start thinking more seriously about spent-fuel disposal options as alternatives to the canceled Yucca Mountain project in Nevada.
Exelon (EXC), which paid $168M into the fuel-disposal fund in 2012 to lower operating earnings by 4.7%, would benefit most from the decision, a Bernstein analyst says; other winners could include Entergy (ETR), Public Service Enterprise (PEG) and FirstEnergy (FE).
For companies such as Duke Energy (DUK) and Southern (SO), which operate in states where electricity costs are built into regulated rates, consumers may benefit because the fee would no longer be included in their monthly bills.
Public Service Enterprise Group Inc. (PEG) declares $0.36/share quarterly dividend, in line with previous. Forward yield 4.26%. For shareholders of record Sept. 6. Payable Sept. 30. Ex-div Sept. 4. (PR)