FirstEnergy Corp. (FE), American Electric Power Company Inc (AEP) – This Week in Utilities: The End of Coal and More Natural Gas

The move would boost TECO Energy, Inc. (NYSE:TE)’s customer base by 50% and, more importantly, increase its energy diversity as the company cuts down on its 61% coal capacity for its regulated utilities.

In the same week that TECO Energy, Inc. (NYSE:TE) is applying for its foray into New Mexico natural gas, Illinois is solidifying its own reliance on the fuel source. Integrys Energy Group, Inc. (NYSE:TEG) released a statement this week commending Illinois politicians for their “swift signing” of the Natural Gas Consumer, Safety, & Reliability Act.

According to Integrys Energy Group, Inc. (NYSE:TEG)’ regulated Chicago utility Peoples Gas, the act is crucial to Chicago’s ability to maintain and upgrade its current natural gas infrastructure, by allowing it to recover costs in a timely manner. On its website, the utility notes:

Peoples Gas wants to continue to upgrade our infrastructure, but under the current regulatory system, those upgrades could take over 40 years to complete. Illinois natural gas utilities need legislation to be confident in continuing to invest in infrastructure upgrades .

On the news of the act’s approval, Peoples Gas President Will Evans said that “[w]e are pleased this law will provide the confidence and timely cost recovery necessary to support Peoples Gas’ accelerated main replacement program over the next 10 years.”

Stay current on electricity
If the switch from coal to natural gas is any evidence, the world of utilities is changing fast, and dividend stocks aren’t the stable stalwarts they once were. Be sure to check back weekly for the latest on your portfolio’s moves, and you’ll be well on your way to electrifying earnings.

The article This Week in Utilities: The End of Coal and More Natural Gas originally appeared on Fool.com is written by Justin Loiseau.

Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool has no position in any of the stocks mentioned.

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