2024-06-30 04:13:07 ET
Summary
- Northwestern Energy does not have sufficient capacity, but is attempting to efficiently deploy $2.5 billion in capital to expand its production.
- A significant part of the plan involved taking over coal-based power generation with limited capital deployment. However, an EPA regulation has put this in potential jeopardy.
- Northwestern Energy is fairly valued, and shares identical types of risks as many others in the utility sector.
One of the quiet beneficiaries around the periphery of the artificial intelligence frenzy has been the utility sector, on the premise that AI implementation will require significant additional electric capacity in the nation's energy grid. The euphoria for the otherwise staid and reliable utility sector has sent a handful of names much higher, driving up the sector as a whole, but not truly lifting all boats, at least as of yet....
Read the full article on Seeking Alpha
For further details see:
Northwestern Energy Group: Risk To Capital Plan From Regulation