Dominion, NextEra, Teco to Increase Power Sales, Bernstein Says

Dominion Resources Inc., NextEra Energy Inc. and Teco Energy Inc. are among utilities that will benefit most from slower power demand growth during the next year, Sanford C. Bernstein & Co. said.

Electricity consumption in the U.S. will grow at half the rate of last year’s 3.6 percent gain, increasing 1.8 percent over the 12 months ending on Sept. 30, 2011, Bernstein estimates in a report today. Growth of residential and commercial demand, at 1.8 percent and 2.2 percent respectively, will outpace an expected 1.4% growth in industrial demand, Bernstein estimates.

The companies that will make the most of the slower demand growth are the ones with the largest base of residential and commercial customers, including Richmond, Virginia-based Dominion, owner of the largest utility in the state, and NextEra and Teco, which both serve Florida, Hugh Wynne, an analyst at Sanford C. Bernstein & Co. in New York, said in the report.

Consolidated Edison, which owns New York City’s utility, Northwestern Corp., a South Dakota utility owner, Pinnacle West Capital Corp., El Paso Electric Co., CH Energy Group Inc., Edison International, PG&E Corp. and Sempra Energy also are better positioned to sell more volumes of power, according to the report.

Revenue growth at Consolidated Edison in New York and Sempra, Edison, and PG&E in California will not match volume sales growth because utility revenues is not tied to mega-watt hour sales in these states, Wynne said in the report.

To contact the reporters on this story: Katarzyna Klimasinska in Houston at kklimasinska@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net.

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