The Need for Electricity During the COVID-19 Pandemic
WASHINGTON -
Dominion Energy (D) expects "incremental residential load" gains as a result of COVID-19 fallout. Southern Company CEO Tom Fanning says his company is "nowhere near" a need to review earnings guidance because of a potential recession.
Sempra Energy (SRE) has reaffirmed earnings per share guidance for 2020 and 2021, as well timing for the sale of assets in Chile and Peru. And Xcel Energy (XEL) says it still "hasn’t seen material impact on its business."
Several electric utilities have demonstrated ability to tap the bond market to lock in low-cost financing, despite ongoing turmoil. Their ranks include Dominion Energy, renewable energy leader NextEra Energy (NEE) and Consolidated Edison (ED), which last week sold $1 billion of 30-year bonds at a coupon rate of just 3.95 percent.
It’s still early days for US COVID-19 fallout. And most electric companies have yet to issue guidance. That’s understandable, since so much is still unknown about the virus and the damage it will ultimately do to human health and the global economy. But so far, the US power industry is showing typical resilience in tough times.
Will it last? We won’t know for certain until there’s a lot more data. NextEra is usually first to report its Q1 earnings reports and detailed guidance. But that’s not expected until April 23. And companies may delay financials further, should the virus and efforts to control it impede collection and analysis of data.
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PG&E keeps nearly 60,000 Northern California customers in the dark to reduce wildfire risk
LOS ANGELES - PG&E purposefully shut off electricity to nearly 60,000 Northern California customers Sunday night, aiming to reduce wildfire risks from power lines during extreme winds.
Pacific Gas and Electric planned to restore power to 70 percent of affected customers in the North Bay and Sierra Foothills late Monday night. As crews inspect lines for safety by helicopter, vehicles and on foot, the remainder will have power sometime Tuesday.
While it was the first time the company shut off power for public safety, PG&E announced its criteria and procedures for such an event in June, said spokesperson Paul Doherty. After wildfires devastated…
