10 U.S. utility stocks gearing up for the hot summer

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We are looking for utilities that can benefit from higher electricity consumption and elevated prices if the operate in unregulated markets

The National Oceanic and Atmospheric Administration predicts above-average temperatures across the United States this summer. Historically, such high temperatures boost energy demand for cooling, significantly affecting overall electricity consumption in the U.S.

As a result, we believe utility companies could benefit from both heightened electricity consumption and potentially elevated prices if they operate in unregulated markets.an economic performance index greater than 1. The EPI is return on capital divided by the cost of capital – a measure of profitability adjusted for risk. An EPI greater than 1 implies positive economic value creation;

generates and distributes electricity and natural gas for 4.7 million customers in the Midwest. It operates in regulated markets, but also owns non-regulated assets in multiples fields, such as natural gas storage facilities and renewable energy infrastructure. The company has the second-highest performance score and highest dividend yield of our, list standing at 66 and 4.1 per cent, respectively.

Investors are advised to do further research before investing in any of the companies listed in the accompanying table.Anthony Ménard, CFA, is vice-president of data management at Inovestor.

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