The Smart Grid Surge Hitting Home (ITRI, COMV, ELON, ED, CEG, DUK, FPL, NVE, POM, SO)

We are seeing at least some significant moves from the company’s who have announced that they are grant recipients under part of the $3.4 billion Smart Grid pledge from the Obama administration day.  We are seeing the big moves in the companies which traders and investors believe will receive the direct orders from the utilities, and are even seeing gains down in the utilities and power companies who are getting direct grants.

Itron Inc. (NASDAQ: ITRI), for smart metering systems, was up 3% at $59.56 with a $2.38 billion market cap.  Comverge, Inc. (NASDAQ: COMV), for peaking and base load capacity solutions to electric utilities, operators, and electric markets, is up 10% at $12.95 with a $286 million market cap.  Echelon Corporation (NASDAQ: ELON) is up 7% at $14.70 with a $598 million market cap.

In the utility sector we are seeing the following moves:

• Consolidated Edison Inc. (NYSE: ED) up 0.3% at $41.47; $136 million grant vs. $11.4 billion market cap.
• Constellation Energy Group, Inc. (NYSE: CEG) up 0.4% at $32.03;  $200 million grant vs. $6.45 billion market cap.
• Duke Energy Corporation (NYSE: DUK) up 0.15% at $15.95; $200 million grant vs. $20.7 billion market cap.wins $200 million smart grid grant
• FPL Group Inc. (NYSE: FPL) down 2.2% at $50.95; $200 million grant vs. $21 billion market cap.
• NV Energy, Inc. (NYSE: NVE) up 1.3% at $11.52; $138 million grant vs $2.7 billion market cap.
• Pepco Holdings, Inc. (NYSE: POM) up 0.4% at $14.51; $168 million grant vs. $3.2 billion market cap.
• Southern Company (NYSE: SO) up 0.35% at $32.69; $165 million grant vs. $26 billion market cap.

Many of the beneficiary companies have not reported yet their awards.

Jon C. Ogg
October 27, 2009