Utility Roundup

A baker’s dozen Portfolio companies hadn’t reported second quarter earnings when the August CUI issue went to post. In this special report, I wrap up their highlights, outlooks and what to do now.

Wall Street consensus is the U.S. Federal Reserve will officially close the book on three-and-a-half years of monetary tightening next week, by cutting its benchmark Federal Funds interest rate. But our focus needs to be on earnings and guidance, not headlines.

It seems California Governor Gavin Newsom will not preside over a utility collapse as former Governor Gray Davis did almost 20 years ago, thanks to a legislative fix to state utilities’ bottomless liability for wildfire damages.

Almost 20 years ago, dysfunctional rules for California’s unregulated power market drove the state’s two biggest electric utilities into bankruptcy and impacted the entire sector. This year, the "inverse condemnation" rule has triggered one bankruptcy filing and may push the state's other electric utilities' ratings toward junk.

Get big or go home: The "Big Four" will likely soon become the "Big Three."

First quarter results are in for US Telecom’s Big Two. The most important takeaway by far: Both companies remain on track with financial results, long-term strategy and building long-term shareholder value.

While much of the rebound in our CUI Conservative Income Portfolio and bond holdings has been due to reduced economic fears, the fact these companies have demonstrated strength in operating results has no doubt helped prices recover over the past four months.

Get big or go home: That’s the communications sector’s reality.

The result of a decision by the U.S. Court of Appeals for the Fourth Circuit in Richmond, Virginia this week puts two proposed long haul natural gas transportation projects in peril.

Despite a not-quite-ready-for-prime-time roll-out, the so-called "Green New Deal"' key goal of de-carbonization is gaining ground on both sides of the aisle in Congress, and more importantly with industry.