Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

PPL Corporation’s (PPL - Analyst Report) subsidiary, PPL Montana announced the allotment of a new 60-megawatt (MW) powerhouse to the residents of the region. The company’s $245 million investment in the new powerhouse replaces a century old powerhouse at the Ranibow Dam hydroelectric facility. This powerhouse will generate sufficient clean electricity to power 45,000 homes.

The newly constructed powerhouse is located approximately 2,500 feet downstream from the Rainbow Dam in the Great Falls and is 200 feet from the previous powerhouse.

In addition, PPL Corporation replaced over 23 miles of 100-kilovolt (KV) power lines and structures, improved the substations at each plant, and fixed a new Crooked Falls switchyard. Currently, water runs through a 2,500-foot power canal and a 25-foot diameter penstock to the new turbine generator.

This venture will help PPL Corporation to improve the competence and reliability of the electrical systems by linking five hydro plants of the Great Falls to NorthWestern Energy’s grid.

PPL Corporation started its development process at the new facility in Oct 2009 and finished the same at the beginning of 2013. This facility commenced commercial operation from Apr 2013.

The project created over 200 construction jobs in the locality. In addition, the venture will increase Rainbow's generating capacity by 70% without the need for building new and big dams.

We note that utilization of renewable energy for electricity generation is increasing primarily due to its clean nature and a growing consciousness among the masses about its benefits. This has influenced utility providers to shift their energy mix to water, solar and wind from fossil fuels.

In fact, several countries have rolled out mandates for minimizing pollution level for power generation. In Aug 2005, the U.S Environmental Protection Agency circulated a regulation that each of the federal agencies will consume renewable energy-fuelled power of not less than 7.5% in 2013 and onward.

To fulfill the environmental legislations, most of the utility providers invested substantial amounts for developing and upgrading their renewable utility assets. Apart from PPL Corporation, other utility providers including ALLETE, Inc. (ALE - Snapshot Report), Northeast Utilities (NU - Analyst Report) and NRG Energy, Inc. (NRG - Analyst Report) are investing heavily to develop and upgrade their renewable emission-free utility assets to comply with stringent regulations.

Fossil fuels still remain the most popular fuel source among energy producers owing to its abundance in the U.S. but it continues to face tough competition from the renewable power generation sources.

Allentown, Pa.-based PPL Corporation is an energy and utility holding company. The company currently has a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%