Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Integrys Energy Group, Inc. (TEG), Duke Energy Corp (DUK), AGL Resources Inc. (GAS): This Week in Utilities, Subsidiary Sales and Rate Requests

Page 1 of 2

Earnings announcements aside, it’s been a busy week for utilities. From natural gas and transmission sales to rate increase to cover increasing costs, these dividend stocks are making moves to make the most of your money. Here’s what you need to know.

Subsidiary switch-up
AGL Resources Inc. (NYSE:GAS) announced Thursday that it has officially handed off subsidiary Compass Energy Services to Integrys Energy Group, Inc. (NYSE:TEG) for an initial cash consideration of $12 million, with an additional $3 million to $8 million cash consideration. If the unregulated natural gas subsidiary fares well over the next five years, Integrys will fork over more finances for its purchase. If not, AGL Resources Inc. (NYSE:GAS) could be left with $15 million total for the sale. For now, AGL will record a $9 million to $11 million pre-tax gain for Q2 2013.

Integrys Energy Group, Inc. (NYSE:TEG)AGL Resources Inc. (NYSE:GAS) and Integrys Energy Group, Inc. (NYSE:TEG) aren’t the only utilities switching around subsidiaries. Duke Energy Corp (NYSE:DUK) completed its purchase of a 72% stake in Atlantic Power (NYSE:AT)‘s Path 15 transmission project. The 84-mile line connects Northern and Southern California’s transmission grids and, according to Duke Energy Corp (NYSE:DUK), plays “a key role in maintaining statewide electric system reliability and market efficiency.”

PG&E Corporation (NYSE:PCG) lays claim to an 18% stake for its ownership and operation of connecting substations, while Western Area Power Administration gets a 10% piece for its continued ownership and operation of the line itself. The announcement did not disclose any financial details of the transaction.

Raising rates
Dominion Resources, Inc. (NYSE:D) requested a fuel rate increase for its Virginia operations, citing higher fuel costs and increased demand as primary reasons for its ask. Its first request in two years, a fuel rate increase is meant to cover costs, but not increase profits. The total ask reflects a 2.1% increase in the average customer’s monthly bill, considerably less than TECO Energy, Inc. (NYSE:TE)‘s 10% ask in April. According to Dominion and TECO, both their requests keep their customers’ bills below national averages. If Virginia’s regulatory body approves the request, Dominion’s new rates will rise in July.

Page 1 of 2
Loading Comments...