Monday, July 17, 2006

Playing the Heatwave

This is expected to be one of the hottest summers on record. People will be using their air conditioners which are known to consume alot of electricity. The clear winners in this case are the electrical utility companies. A few names I'm looking at are listed below.

AVISTA CORP (NYSE:AVA)
EMPIRE DISTRICT (NYSE:EDE)
F P L GROUP INC (NYSE:FPL)
MONTANTA DAKOTA UTIL (NYSE:MDU)
NISOURCE (NYSE:NI)
NRG ENERGY INC (NYSE:NRG)
PG&E CP (NYSE:PCG)
WESTAR ENERGY INC (NYSE:WR)
XCEL ENERGY INC (NYSE:XEL)

1 comment:

powerlytix said...

careful on making assumptions that increased demand means increased operating profits. If the marginal demand is costing the serving utility more than it charges in retail rates it actual results in a loss. Several of the utes you mentioned are faced with this exact scenario today.