Barclays on U.S. Power: An Obstacle Removed for HAP/MACT
Tweet
Share
E-mailGet Alerts PPL Hot Sheet
Price: $27.30 -0.26%
Rating Summary:
16 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
16 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Join SI Premium – FREE
Barclays on U.S. Power: An Obstacle Removed for HAP/MACT
Barclays analyst, Daniel Ford, said, "On 10/24, Judge Rosemary Collyer of the U.S. District Court in DC denied a motion by the Utility Air Regulatory Group (UARG) to postpone the Environmental Protection Agency's ruling on the Hazardous Air Pollutant Rule (HAP) by 1 year to 11/16/2012. This paves the way for a ruling by 12/16/2011."
"The UARG had urged the Court to grant a delay to consider the comments made. This ruling helps to remove uncertainty in the market regarding the timing of the HAP rule. We forecast that the rule results in 42 GW of shutdowns by 2015 with a potential 1-2 year delay for equipment installations."
"The risk factors to the HAP rule's implementation are declining though legislative risk remains."
"We reiterate our view that the best way to invest in Power is to buy integrateds with a yield hedge like OW rated PPL Corporation (NYSE: PPL) with a 4.8% yield. Other high-yielding integrateds are FirstEnergy (NYSE: FE)(EW) and Ameren (NYSE: AEE)(EW)."
"We also like OW rated Calpine (NYSE: CPN) which has 70% of EBITDA in Texas or California which are relatively unaffected by these rules and have good
fundamentals otherwise. A riskier way to invest is OW rated coal-fired independent power producer GenOn Energy (NYSE: GEN)."
Barclays analyst, Daniel Ford, said, "On 10/24, Judge Rosemary Collyer of the U.S. District Court in DC denied a motion by the Utility Air Regulatory Group (UARG) to postpone the Environmental Protection Agency's ruling on the Hazardous Air Pollutant Rule (HAP) by 1 year to 11/16/2012. This paves the way for a ruling by 12/16/2011."
"The UARG had urged the Court to grant a delay to consider the comments made. This ruling helps to remove uncertainty in the market regarding the timing of the HAP rule. We forecast that the rule results in 42 GW of shutdowns by 2015 with a potential 1-2 year delay for equipment installations."
"The risk factors to the HAP rule's implementation are declining though legislative risk remains."
"We reiterate our view that the best way to invest in Power is to buy integrateds with a yield hedge like OW rated PPL Corporation (NYSE: PPL) with a 4.8% yield. Other high-yielding integrateds are FirstEnergy (NYSE: FE)(EW) and Ameren (NYSE: AEE)(EW)."
"We also like OW rated Calpine (NYSE: CPN) which has 70% of EBITDA in Texas or California which are relatively unaffected by these rules and have good
fundamentals otherwise. A riskier way to invest is OW rated coal-fired independent power producer GenOn Energy (NYSE: GEN)."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- META to capture largest share of users, SNAP to benefit from ad budget shifts - Canaccord Genuity weighs in on TikTok ban
- Teradyne (TER) PT Raised to $125 at TD Cowen
- Meta Platforms Inc. (META) PT Lowered to $575 at UBS, 'shares are offering a 3-to-1 skew'
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
BarclaysSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
