Entries by Glenn McIsaac

    Reports of a Utility "Death Spiral" Are Greatly Exaggerated

    March 3, 2015 4:20 PM by Glenn McIsaac

    Distributed solar energy has come a long way, but it is unlikely to pose a major threat to the U.S. utility industry for many years to come.

    As a research analyst, I have to take exception to a recent article in the Financial Times that suggested that the traditional utility business model is threatened by customers who generate their own power using distributed generation. The article noted that an increasing number of customers opting for distributed generation could leave fewer remaining customers to pay for the grid, resulting in higher rates and yet more defections—a potential “death spiral” for the utility industry. 

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    Turning the Lights Up on Utilities

    June 11, 2014 3:57 PM by Glenn McIsaac

    If you want to know what has powered the S&P 500, check out utilities, one of the top three performing sectors since 2004, with an average annual return of 10.4%. 

    In their search for total return, many investors have fallen in love with utilities stocks. And who could blame them? Over the past decade, the utilities sector has been one of the top performing components of the Standard & Poor's 500 (See Chart 1) due to solid earnings growth (an average compound annual growth rate of 4%) and declining interest rates.

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