Yahoo Finance PG&E Corp. (PCG) Secures 24% Reduction in Gas Emissions
PG&E Corporation PCG recently announced the successful reduction of emissions from its natural gas pipeline system by more than 24%. Per the California Public Utilities Commission 2023 report, the company achieved this target two years ahead of its schedule.
This highlights PCG’s continuous efforts to reduce emissions from its operations and deliver safe, sustainable and reliable energy to its customers. Such efforts by the company will assist in duly achieving its ultimate target to reach net-zero emissions by 2040.
PCG’s Initiatives for Net-Zero Emissions
PG&E Corp. has been engaged diligently in promoting clean energy. With California aiming at achieving carbon neutrality by 2045, PG&E targets to duly meet the state’s renewable energy mandate within time.
In 2022, approximately 40% of PCG's total electricity delivered to customers came from specified eligible renewable resources, including biopower, small hydroelectric, solar and wind power. PG&E customers also received 49% of electricity deliveries from carbon-free nuclear power generated by the Diablo Canyon Power Plant and 7% from large hydroelectric power.
Moreover, large-scale solar energy accounts for the largest portion of PG&E's total renewable energy power mix. The company has more than 260 Renewables Portfolio Standard eligible power purchase contracts, totaling more than 6,000 megawatts (MW) of renewable energy.
Additionally, PG&E has connected more than 700,000 customers with rooftop solar to the electric grid. Such developments should expand the company’s footprint in the expanding renewable energy market.
Utilities’ Focus on Carbon Neutrality
Utilities in the United States are rapidly moving toward achieving decarbonized operations to curtail climate concerns. A report from the U.S. Energy Information Administration suggests that U.S. power grid capacity will probably double over the 2022-2050 period, with renewable sources of energy likely to dominate the power sector. The report anticipates an increase in the renewable capacity of about 380% from 2022 through 2050.
Apart from PCG, utilities that are investing in renewable projects and thus should benefit from the growing U.S. renewable market are as follows:
Duke Energy DUK has taken the initiative to expand the renewable asset base and aims to reach its target of net-zero carbon emissions from electric generation by 2050. The company has already lowered its carbon emissions from 139 million metric tons in 2005 to 77 million metric tons in 2022.
Duke Energy boasts a long-term earnings growth rate of 5.4%. Shares of DUK have appreciated 11.7% in the past six months.
American Electric Power Company’s AEP plans include growing its renewable generation portfolio to approximately 50% of the total capacity by 2030. Its 2023-2027 capital investment forecast includes $9 billion in the regulated renewable plan.
AEP has a long-term earnings growth rate of 5.7%. The company’s shares have increased 10.2% in the past six months.
Ameren Corporation AEE targets to expand its renewable portfolio by adding 2,800 MW of renewable generation by the end of 2030 and a total of 4,700 MW of renewable generation and 800 MWs of battery storage by 2040.
AEE’s long-term earnings growth rate is 6.9%. Its shares have appreciated 16.2% in the past six months.
Price Movement
In the past year, PG&E Corp. shares have increased 36.3% against the industry’s decline of 13.9%.
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Zacks Rank
PG&E Corp. currently carries a Zacks Rank #4 (Sell).
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