Thursday, April 24, 2014

Oklahoma Utilities Charging Fees for Solar: What's Up With Utility Stocks?

A solar surcharge bill was just signed by the governor of Oklahoma, which would charge a fee for people who install solar panels on their roofs, and are still attached to the grid. Apparently, utilities in that state feel threatened by the free energy from the sun, and maybe they are afraid that the entire state will turn to solar.

OGE Energy Corp. (OGE), which receives 88% of its revenues from Oklahoma, is one of the lowest yielding utility stocks, according to the free list of electric utilities at The stock pays only 2.5% versus an industry average of 4%. The stock trades at 19 times trailing earnings, and 17 times forward earnings. Quarterly revenues dropped by41% for the latest reported quarter. The company reports on My 1.

If you are looking for an electric utility with a higher yield, Ameren Corporation (AEE) has a dividend rate of 4.0%. The company serves customers in Missouri and Illinois, with both electricity and natural gas. Last month, AEE received a natural gas rate increase, with plans for a rate increase in July in Missouri. The stock has a price to earnings ratio of 34, and a forward P/E of 15. Revenues rose 4.9% for the latest quarter, with the next earnings announcement on May 8.

Avista Corporation (AVA) is a distributor of electricity and natural gas in the state of Washington, Idaho, and Oregon. 45% of the electrical generation comes from hydro power, 16% coal, 13% gas, and 2% from wood waster. The stock trades at 16.5 times trailing earnings, and 15 times forward earnings. The yield is 4.2%.

For a free list of electric utility stocks, which has the PE, the forward PE, the PEG, and the yield, go to

Author doesn't own any of the above at the time the article was written.


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