Infrastructure investments supporting generation changes drive utility earnings and dividend growth.
Scana, tax reform, and the FERC required the utility to rethink its financing plans.
We modestly reduced our outlook for the utility as we think the a renewal of Ohio Distribution Modernization Rider is unlikely and industrial sales growth is expected to slow.
The natural gas explosion at wholly owned Columbia Gas of Massachusetts will likely result in further acceleration of NiSource's safety program to replace bare steel and cast iron pipe.
We think the shares still have room to run following the FES resolution.
Three undervalued utilities are positioned to benefit from the shift to natural gas and renewables.
The main issue for shareholders will be the size of settlement payment to creditors.
Some negative developments driven by regulators and legislators ding growth prospects for the wide-moat utility.
There is opportunity for investors when the market revalues the company as a fully regulated narrow-moat utility.
We have a high level of confidence that FirstEnergy can separate itself from FES in 2018, and shares are trading at a near-25% discount to our fair value estimate.
The narrow-moat, soon-to-be-regulated utility is being overly penalized in the market due to the pending FES bankruptcy.
Management has done a good job allocating capital.
Growth projects and the Questar acquisition will add to its scale.
The utility provides returns that are well above its cost of capital.
Dominion is uniquely positioned to invest in high-ROIC energy infrastructure.
Several years of depressed power prices have challenged its deregulated businesses.
It has among the best prospects of any regulated utility we cover.