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Challenges, Opportunities for Utilities Under Trump

While rising interest rates may threaten utility valuations, we think gas and power prices will stay low and renewable energy growth will continue.

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Andrew Bischof: President Trump's election will present challenges and opportunities for utilities. The administration has been an outspoken advocate for natural gas and coal, which likely will keep gas and power prices low. We expect gas demand will continue growing, supporting infrastructure investment and earnings growth for many utilities. We think Dominion and Duke Energy will benefit the most from gas-related infrastructure growth.

We don't expect a resurgence in coal generation, as economics now drive the decision to burn natural gas over coal, rather than the additional costs from environmental regulation. Low gas and power prices will continue to make the economics challenging for both coal and nuclear generators, hurting utilities like Exelon.

Andrew Bischof does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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