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.
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.
