What is the hottest sector this year? Thinking a high-growth sector like tech? Think again! Utilities are up 15% The sector is benefiting from a surge in demand for electricity and limited supply allowing them to charge customers more.
The biggest utility in our most populous state -- PG&E (PCG)-- said this week that first-quarter profit jumped 20%.
PG&E Chief Executive Peter Darbee joins the guys for the conversation.
Dylan asks how can PG&E operate as a capitalist enterprise in what is historically a highly regulated business?
Policy makers learned their lesson during the California energy crisis, Darbee says. Former California Governor Gray Davis was recalled in part because of how he handled the energy crisis. We’ve convinced regulators they need to let us hedge -- to smooth out the impact on customers.
Eric Bolling wants to know how NYMEX trading uranium will impact PG&E.
It might increase the liquidity in the market, answers Darbee. And perhaps add more volatility. The supply of uranium has remained pretty constant over the past decade, he explains, and now the demand is going up substantially. Consequently price is going up.
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