Shifting Fortunes Within the Power Sector: Wires Companies in Vogue
Some wires companies are seeing improved valuation compared to the rest of the power sector due to a number of factors. The companies that benefit from a combination of the factors outlined below are likely to see the greatest boost to their evaluations. Transmission owners need to determine how they may best take advantage of these factors to unlock the value of their assets to benefit shareholders.
* More investment options in the transmission sector are providing substantial growth opportunities for some transmission owners.
* A relatively high risk-adjusted rate of return offered by federal policymakers is promoting investment in the sector.
* A streamlined regulatory environment allows some wires companies to avoid the state and federal jurisdictional overlap faced by most transmission owners.
* Impetus from the Energy Policy Act 2005 and other federal regulatory initiatives also promotes transmission investment.
