RE:RE:RE:RE:RE:RE:RE:RE:RE:X Day TODAY MAY 22ndDems are anti-oil, mostly. The big issue with gas is methane release and fracking.
Q2 and Q3 are the bad quarters for WGL, so that’ll probably limit upside here for a while.
TJPatrol1 wrote: leo101 wrote: Capharnaum wrote: bossu wrote: Even utilities face the prospect of reduced power consumption from the decline of economic activity.
Being in the industry, reduced power consumption on the natural gas side isn't too much of a concern. Decoupling plus rates mechanism make it so that in scenarios where consumption goes down by 10% (which is kinda a "worst" scenario at the moment), its effect on net earnings is less than 3%.
It's the same on midstream, as the capacity is already contracted, so only interruptible service variable fees will be slightly lower, but it's a small hit on earnings as well even in scenarios where demand declines by 10%.
As to the banks, they'll raise their bad loan provisions which will reduce their earnings. I think bad loans costs will only come up later as for now the banks will likely extend maturities or add back unpaid interests to principal due instead of forcing the issue. So I don't foresee extra costs right now other than increasing provisions for the banks, principally for the commercial market.
good old ala is healthy enough to get through this mess but it'll follow the market down if there's a big wash out.
the question is; if biden wins, will he declare war on all fossil fuels? i could easily see biden pressuring the utility commisions to hammer all fossil fuel energy and cozy up to wind/solar etc.