Goldman Sachs Reports on Utilities (AEE, D, EIX, ETR)

In a report released yesterday, Goldman Sachs commented on various utilities. In the report, Goldman was mixed in its assessment. Goldman Sachs writes, “PJM, the grid operator for key MidAtlantic & Midwest power markets, released capacity auction results for the 2014-2015 delivery year—with pricing in the key eastern PJM markets down 40%+ on YoY basis. Pricing in the RTO or western zone of PJM increased dramatically, up over 350% versus our forecast of a 120% increase. An increase in the volumes of demand response cleared in this auction – especially in the RTO zone, but also PJM-wide – partially offset the impact of future environmental regulations for coal plants” Goldman Sachs has a Sell rating on AEE; a Neutral rating on D, EIX, ETR, NEE, PEG; and a Buy rating on PPL and SRE.