SOURCE: StockCall

StockCall

December 03, 2010 08:49 ET

Equity Research on Allegheny Energy Inc. and American Electric Power Co. Inc. - Electric Utilities Still Have Debt Issues

JOHANNESBURG, SOUTH AFRICA--(Marketwire - December 3, 2010) - www.stockcall.com/ offers investors comprehensive research on the electric utilities industry and has completed analytical research on Allegheny Energy Inc. (NYSE: AYE) and American Electric Power Co. Inc. (NYSE: AEP). Register with us today at www.stockcall.com/ to have free access to these researches. 

Electric utilities including Allegheny Energy Inc. and American Electric Power Co. Inc. typically benefit from the high usage winter season but this year debt may hinder growth. It was a big spending year for electric utilities which spent hundreds of millions on massive overhauls to plants and distribution stations. The majority of the spending was on upgrades, improving efficiency and becoming more environmentally friendly. Allegheny Energy Inc. and American Electric Power Co. Inc. research reports are accessible for free by registering today at www.stockcall.com/AYE031210.pdf orwww.stockcall.com/AEP031210.pdf

The improvements to efficiency will likely improve the operating margins but the unpaid debt will likely keep share prices from jumping this winter. Register now at https://stockcall.com/development/stockcall/page.php?name=register.html to have free access to our reports on the electric utilities industry.

www.stockcall.com/ is an online platform where investors doing their due-diligence on the electric utilities industry can have easy and free access to our analyst research and opinions on Allegheny Energy Inc. and American Electric Power Co. Inc.; investors and shareholders of these companies can simply register for a complimentary membership at https://stockcall.com/development/stockcall/page.php?name=register.html

To better elucidate the debt problems utilities are facing take a look at their value to debt ratio. Using Pennsylvania based utilities as a small sample; all electric companies in the region would have a value to debt ratio of less than 1. Essentially, if they were to sell off everything they own, it would still be less than they owe. Visit www.stockcall.com/ to see how companies in this industry have grown over the past years and how they are expected to perform in the future.

Moving forward, electric utilities are by no means a lost cause. They simply have incurred a great deal of debt but the long term benefits of efficiency improvements during peak seasons could generate the revenue needed to resume profitability.

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