NGG - How National Grid is Trying to Reinvent Itself
UK-based electric and gas utility National Grid (NYSE: NGG) is stepping up efforts to become a major natural gas player in the U.S. market and is also looking to increase its presence in renewable energy and electric vehicle charging. The company has a solid dividend and recurrent revenue stream that is common in traditional utility stocks, but has also launched an initiative to modernize grid operations in both the U.S. and U.K. and is seeking new leadership at the highest level stateside.
The company's ongoing evolution and appetite for a move into potentially higher-margin businesses may leave investors poised for a future gain, but a recent dispute with New York Governor Andrew Cuomo has raised eyebrows about the company's ability to weather regulatory challenges. It's a good time for a look at what's at stake in the dispute and determine if it could have bigger ramifications for National Grid's operations and profitability.
National Grid has been active in the U.S. for roughly 20 years and has been operating in the UK since 1986. The company has grown through the acquisition of existing utility assets in the eastern U.S. to amass more than 20 million utility customers in New York, Massachusetts, and Rhode Island.