Utilities Sector

Regulators in New York and Vermont have presented Entergy's nuclear plants with significant challenges, effectively killing the Enexus spin-off in 2009 and now contesting the plants' operating license renewals.Continued low power prices in the Northeast will pressure earnings and cash flow.Although

The state of Parana's 59% voting share gives it the power to control all of Copel's operations. Thus, the state could use Copel as a tool to further social and economic objectives instead of maximizing shareholder wealth.Similar to other Brazilian utilities, the company relies on hydroelectric

Almost 50% of NIPSCO's electric sales are to industrial customers, higher than most utilities. Industrial sales are more sensitive to the economy than residential and commercial sales.Continued weak natural gas prices could reduce shale-gas drilling activity in the Marcellus region, reducing

Some GenOn plants will struggle to run profitably until competitors retire or retrofit capacity.

Regulator-set returns tend to follow the path of capital costs in the country, thus negating the positive effects of long-term declines in investor risk perceptions. The allowed WACC in Brazil was lowered to 7.5% from 9.95% in April 2012.In the medium-term, Enersis has relatively little planned

A strong product backlog and a well-funded generation construction program will drive major growth.

In Iowa, its customers' electric bills average $0.09 per kWh, versus $0.06 per kWh for peer MidAmerican, potentially leading regulators to take a harder line on future rate cases.Demographic trends in its major markets, Iowa and Wisconsin, are not particularly favorable for customer count

Positive regulatory developments should lead to higher payout ratio and strong dividend growth.