It’s still early days for US COVID-19 fallout. And most electric companies have yet to issue guidance. But so far, the US power industry is showing typical resilience in tough times.
That means future selloffs in the ongoing bear market are buying opportunities for best in class electric utilities, not a reason to sell.
Utility stocks have picked up in 2020 where they left off in 2019. The Dow Jones Utility Average reached an all-time high of 934 this week. So long as investors crave yield, there’s a case the sector will reach higher ground - but this story also has a less savory side.
New England-based Eversource Energy (NYSE: ES) is the latest US electric utility to target zero carbon dioxide emissions, with a far more aggressive timetable than the 2050 date set by its sector peers.
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.
Greens and other environment-first advocates have emerged as a powerful bloc in European parliamentary elections, garnering a heavy influence on the ruling Centrist parties which will impact Europe's energy policies and providers.
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