Canadian Power Companies
In the case of dividends, we look closely at the EV and the EV before interest, taxes, depreciation and amortization (EBITDA) of the enterprise value (EV) and earnings (ETJ). The expected dividend yield is shown in the table below, which shows the dividend payment divided by the current market price for the next 12 months.
Suncor Energy Inc. will be the largest Canadian energy company from 2019, with a market capitalization of $47.65 billion (63.29 billion Canadian dollars). Suncor has Canadian oil sands properties that provide the lion’s share of its annual production. TC Energy Corporation has extensive oil, natural gas and pipeline activities spanning Canada and the US and had a market capitalization of $US46.68 billion ($62.17 billion) as of November 2019.
Canada’s energy companies also want to capitalize on the Biden administration’s clean-energy ambitions, signalling strong growth in the renewable energy sector. Capital Power Corp., the Cardinal Point Wind Project owner in Illinois, is one of several Canadian companies that see opportunities in the planned decarbonization of the U.S. electricity industry. The Quebec-based company has developed projects to help it meet its target of 600 MW of solar capacity in Texas and improve wind development prospects on the US East Coast and Hawaii.
The C $26 billion 15-year programs is one of the largest clean energy projects in North America. In his first 100 days of office, Prime Minister Justin Trudeau pledged to move the nation from the zero-emissions net by 2050 and decarbonize its electricity sector by 2035. Trudeau’s infrastructure plan calls for $100 billion to revitalize the country’s power grid and seeks a 10-year extension of the tax credit for manufacturing investment for clean energy projects.
CANDU Energy is also developing new business opportunities in connection with existing CANDU reactors and new construction opportunities for the model EC6 and the third generation ACR-1000 design that has been put on hold.
In 2012, CANDU Energy, the China National Nuclear Corporation (CNNC) and two other Chinese companies had an agreement to develop a detailed concept for an advanced CANDu reactor (AFCR) based on the EC6, which will run on recycled uranium fuel mixed with depleted uranium and natural uranium equivalent (NUE). The government contributed $75 million to the completion of the EC6 development programme. CEDU Energy has also completed remediation projects in Bruce Point, Lepreau and Wolsong under service contracts with the government.
In 1944 Dominion Gas and Electric Company merged with the International Utility Company 1944, an old American partner of the Alberta Company. At that time, Mid-West Utilities changed its name to Canadian Utilities Limited in the hope of avoiding confusion with the American utility of the same name. The company, then called Northern Power and Light Ltd., was founded by Saskatchewan’s Indian boss Mid-west Utilities Limited, which in turn owned Vegreville Utilities Ltd., the operator of coal-fired hand-fed steam engines for two generating units that supplied electricity to 380 customers at Hanna, Stettler, Lloyds, Grande Prairie and Raymond.
The International Utilities Company, the older American partner of the companies in Alberta, provided additional capital to the Canadian business. The company used some of this additional capital to push ahead with rural electrification.
Justin Sullivan / Getty Images file In some cases, analysts are changing the way they rate utilities because of the Texas government. Earlier this week, Texas Governor Greg Abbott warned utilities not to send their customers huge bills to make them pay, at least in the interim, in the event of benefit cuts or defaults. The exact impact on businesses is not clear yet. We will have to wait to see whether the government legislates or intervenes to offset the extreme financial impact of such an event on businesses and consumers if new data flows continue to form. Energy contracts continue to be in bad shape.
Canadian utility stocks have long been an integral part of Canadian investment portfolios for several reasons. First, they operate in a regulated environment that provides more consistent revenue, leading to fewer surprises.
Canadian utility stocks offer excellent dividends, as most companies have solid roots in the industry. As such, they can reward shareholders in dividends or at least have high growth potential as shares. Remember that these companies, in no particular order, offer unique investment opportunities for Canadians.
Fortis is one of the 15 largest utilities in North America and continues to provide its customers with reliable, clean and secure energy. Algonquin Power & Utilities is Canada’s most diversified utility, with assets of more than $10 billion.
Algonquin is active in generating, transmission and distributing water, gas and electricity to communities in the United States. Algonquin has a strong portfolio of long-term wind, solar and hydropower contracts with a total installed capacity of over 15 GW. The company has more than 50 power generation plants and is one of the 20 utilities in North America. In addition, the company and its subsidiaries hold equity interests in more than 39 clean energy plants.
The companies’ assets are evenly distributed among electrical assets and a mix of gas and unregulated energy infrastructure. The company operates 10 utilities, including ITC, US Energy, Fortis Alberta and Fortis BC. ITC is the largest independent power transmission company in the U.S. It serves 3.3 million utilities (2 million electricity and 1.3 million gas customers) in North America.
As of January 2019, Alectra Incorporated will be the largest public utility in Canada regarding the number of customers served. When it was established, it was described as the second-largest private electric utility in North America behind the Los Angeles Department of Water and Power. The company is owned by a public limited company, the shares held in varying amounts by the municipalities to which the previous companies belonged.