(June 2008) As fossil fuel prices continue increasing and alternative energy gathers momentum, the energy and utility industries can expect to see continued interest from private-equity...
Greening IOU Equities
Low-carbon strategies are yielding rewards for shareholders.
( e.g., Edison International), while many others with both coal and nuclear capacity are in a relatively neutral, or physically hedged position with respect to carbon exposure.
As the mechanisms for carbon control become clearer over the course of 2008, more winners and losers will emerge—in terms of total shareholder return—based heavily on both carbon and green impacts.
1. Companies in this analysis were traded publicly during the period 1/1/2005 to 12/31/2007 and in one of the five industry sub-segments listed. Excluded were companies with less than $700 million in market capitalization, companies in the midst of bankruptcy proceedings, companies now owned by private investor groups, and foreign-owned companies.
2. The carbon analysis is based on a subset of the 77 utilities and contains only power generation and integrated electric and gas companies, a total of 51 companies.
3. Data Sources: EPA CEMS; Nuclear Regulatory Commission, EIA, NERC ES&D, CFE, StatsCanada, CEMS, U.S. Federal and State Agencies, ISOs, Unit Owner and/or Operator Websites, Global Energy Primary Research; current generation capacity by type as of Dec. 13, 2007; July 2006 - June 2007 for tons CO2 emitted.