Barclays on U.S. Power: NERC's Assessment Is Focus on Texas
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8 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays on U.S. Power: NERC's Assessment Is Focus on Texas
Barclays analyst, Daniel Ford, said, "On 11/28 the North American Electric Reliability Corporation (NERC) issued its 2011 Long-Term Reliability Assessment, which included a forecast of reserve margins through 2021. The report showed Texas (ERCOT) and New England with by far the tightest conditions and PJM surprisingly well supplied when accounting for coal shutdowns. NERC's anticipated 2015 reserve margin for ERCOT was 10.8% and for New England 11.9%. PJM, which spans the Mid-Atlantic and Midwest, had 20.7%."
"The generators in Texas positioned to benefit from higher prices are Overweight rated Calpine (NYSE: CPN) and NRG Energy (NYSE: NRG). However, the likelihood of an extended period of low gas prices makes CPN the better investment. We expect ERCOT to release its updated reserve assessment in December. NRG is also in New England and others include Dominion Resources (NYSE: D)(OW), NextEra Energy (NYSE: NEE)(OW), and Entergy Corp. (NYSE: ETR)(OW)."
Barclays analyst, Daniel Ford, said, "On 11/28 the North American Electric Reliability Corporation (NERC) issued its 2011 Long-Term Reliability Assessment, which included a forecast of reserve margins through 2021. The report showed Texas (ERCOT) and New England with by far the tightest conditions and PJM surprisingly well supplied when accounting for coal shutdowns. NERC's anticipated 2015 reserve margin for ERCOT was 10.8% and for New England 11.9%. PJM, which spans the Mid-Atlantic and Midwest, had 20.7%."
"The generators in Texas positioned to benefit from higher prices are Overweight rated Calpine (NYSE: CPN) and NRG Energy (NYSE: NRG). However, the likelihood of an extended period of low gas prices makes CPN the better investment. We expect ERCOT to release its updated reserve assessment in December. NRG is also in New England and others include Dominion Resources (NYSE: D)(OW), NextEra Energy (NYSE: NEE)(OW), and Entergy Corp. (NYSE: ETR)(OW)."
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