The summer heat is intense over most of the U.S. this week and the nation's power grid "is holding up" despite "some pretty serious load," Baird senior policy analyst Christine Tezak told CNBC Friday.
"Cheap natural gas is keeping power prices low," or around $200 per megawatt range, she said.
But the grid is also going to be changing because the Federal Emergency Regulatory Commission (FERC) wants to spread the cost of alternative energy down to users and the Environmental Protection Agency plans to put out a "ton of rules" that will "shut down dirtier power generators."
So what's hot in power?
"When you’re looking at power investment, you want to look at companies expanding the transmission component of the business. That would be companies like American Electric Power [and] International Transmission Company ," Tezak said.
"What you’re looking at is opportunity out of FERC to be more strategic in the investments you want to make," including in renewable energy, she said.
CNBC Data Pages:
- Dow 30 Stocks—In Real Time
- Oil, Gold, Natural Gas Prices Now
- Where's the US Dollar Today?
- Track Treasury Prices Here
Disclosure information was not available for Christine Tezak or her company.