Currents - Energy Industry Insights, Volume 5, Issue 23

Why the American Jobs Plan Would Benefit Coal-Heavy Utility Stocks -

"A close look at some of the utilities publicly supporting a federal CES, which would require utilities to increase their share of carbon-free energy over time, reveals utilities like Exelon or PSEG heavy on nuclear and renewables were first to support the plan."

Why this is important: The American Jobs Plan may help coal-fired utilities switch to renewables according to Forbes. The Jobs Plan has a goal of 100 percent clean energy and to reduce CO2 emissions 80 percent by 2035. A new study by Morgan Stanley believes this mandate will improve the performance of coal heavy utilities and returns to their shareholders as rate regulators allow a reasonable return rate on the expenses to make this transition. Using American Electric Power as an example, the study notes it has plans to add 16,600 MW of renewables while shutting down 8,000 MWs of coal-fired electrical generation. The $13.8 billion cost would result in an increased return on investment for the utilities shareholders as the changes would be required by U.S. law and policy.

Please see full Newsletter below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Spilman Thomas & Battle, PLLC | Attorney Advertising

Written by:

Spilman Thomas & Battle, PLLC

Spilman Thomas & Battle, PLLC on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.