What Companies Are In The Public Utilities Field

What Companies Are In The Public Utilities Field? 13 Best

Sukanya Mukherjee
By Sukanya Mukherjee 11 Min Read

The companies that supply water, sewage, electricity, natural gas, and other essentials for residential and commercial premises are known as utility companies. So, what companies are in the public utilities field? 

Large corporations that provide various services and specialized businesses that concentrate on wind energy and other services are both examples of utilities. Although many companies in the utility sector thrive, they are typically subject to extensive regulation by state authorities. 

So today, we are looking into what companies are in the public utilities field.

The Utilities Sector: What Is It?

Before we discuss what companies are in the public utilities field, we must first understand this industry. Large corporations providing various services, like electricity and natural gas, or those focusing on just one, like water, are considered utilities. Some utilities use clean, renewable energy sources like solar and wind energy.

In contrast to the overall equities markets, utilities often provide investors with reliable and stable dividends and less price volatility. As a result, utilities typically fare well during economic downturns and recessions. In contrast, utility stocks typically lose market favor during periods of economic expansion.

Because utilities require a sizable quantity of expensive infrastructure, they have a lot of debt on their financial sheets. Utilities are highly vulnerable to fluctuations in market interest rates due to their debt loads.

Additionally, utilities need constant funding to pay for infrastructure renovations and new asset purchases because they are capital-intensive industries.

As of July 2022, utilities face additional difficulties due to increasing inflation. Inflation in the 1970s and 1980s forced utilities to deal with heavy debt, skyrocketing fuel prices, blackouts, more regulation, and bankruptcy.

The best investments for security, abundant income, and consistent wealth creation will probably still be utilities that manage to thrive despite economic difficulties.

What Are Utilities Firm’s Pros And Cons?

Before we discuss what companies are in the public utilities field, we must discuss the pros and cons. 

The popularity of utilities as a long-term buy-and-hold investment is due to their stability as investments and frequent distribution of dividends to shareholders. Compared to other securities, utility stock dividend yields tend to be greater.

Utilities become tempting during periods of economic contraction and cheap interest rates. Because of the dividends they issue on their shares, they have less volatility and offer an attractive source of consistent investment returns.

However, utilities must invest in costly infrastructure that needs regular updating and maintenance and is subject to strict regulatory control. Utility firms frequently floated debt packages that increased their debt loads to fund these infrastructure demands.

These services are more vulnerable to interest rate risk because of this debt. The corporation must offer larger yields to draw in bond investors if rates rise.

Pros:

  • The utility industry provides secure, long-term investments with a consistent, alluring payout.
  • During economic turbulence, utilities serve as a safe refuge for investment.
  • Bonds, ETFs, and specific stocks in individual companies are just a few investment alternatives utilities provide.

Cons:

  • Strict regulatory scrutiny makes raising utility prices for customers to boost income challenging.
  • Expensive utility infrastructure needs ongoing maintenance and upgrading.
  • Utilities lose appeal and have to raise their bond yields when market interest rates are high.

So now, let’s see what companies are in the public utilities field. 

What Companies Are In The Public Utilities Field?

Let’s dive in and check what companies are in the public utilities field. 

It’s crucial to consider the company’s size and client base when choosing a public utility provider. Additionally, you should consider the company’s financial health and track record of client satisfaction.

Take these things into account when choosing a public utility provider. The following are some of the biggest multi-utilities:

1. American Electric Power

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Electricity is provided to clients in 11 states by American Electric Power, a public utility. It is the only business authorized to supply power to a specific region as a controlled monopoly.

The biggest electric provider in the US, AEP has been in operation for more than 120 years.

2. Edison International

A corporation called Edison International offers public utilities. They provide various services, some of which are water, gas, and electricity.

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They additionally provide goods and services for energy efficiency and renewable energy. The United States, Chile, and the Philippines are just a few nations where Edison International conducts business.

3. Southern Company

Customers in the southern region of the United States can purchase gas and electricity from Southern Provider, a public utility company.

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The corporation serves a sizable clientele and runs several power plants. Other industries in which Southern Company is active include telecommunications and water services.

4. Duke Energy

Duke Energy comes to mind when thinking about what companies are in the public utilities field. 

Duke Energy is one of the US’s biggest holding companies for electric power. Operating out of Charlotte, North Carolina, the company operates throughout Florida, North and South Carolina, Indiana, Ohio, and Kentucky.

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About 24 million consumers across the country receive electricity from Duke Energy.

Seven million consumers are served by the company’s regulated utility activities, located in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky.

5. Aqua America, Inc.

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With its corporate office in Bryn Mawr, Pennsylvania, Aqua America, Inc. provides water and wastewater services. More than three million people are served by the organization, which has a workforce of more than 3,700.

6. AT&T 

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AT&T is a giant telecommunications corporation worldwide that provides wide-ranging services, including wireless, broadband, and television.

When seeking a dependable and reasonably priced solution in the public utility sector, AT&T is a fantastic option.

7. The AES Corporation

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The largest independent energy generator in the world is the publicly traded AES Corporation, which is situated in Arlington, Virginia, in the United States.

The corporation is present in more than 30 countries globally and owns, runs, or has a stake in more than 150 power plants across more than 20 nations.

The New York Stock Exchange lists the AES Corporation under the AES ticker.

8. Verizon

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Another significant telecommunications giant that provides wireless, broadband, and television services are Verizon. Their dependability and client support are well-known.

If you’re searching for a reliable solution in the public utility sector, Verizon is an excellent option.

9. American Water Works Company, Inc.

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What companies are in the public utilities field? We have American Water Works Company, one of the most prominent and geographically varied publicly traded water and wastewater utility enterprises in the United States.

The corporation, which has its corporate office in Voorhees, New Jersey, employs more than 14,000 committed employees and offers regulated and competitive drinking water, wastewater, and other associated services to an estimated 15 million customers across 47 states and Ontario, Canada.

10. National Grid plc

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With its headquarters in London, the United Kingdom, National Grid plc is a multinational British energy provider.

It was established in 1990 as the UK’s largest natural gas distributor. The corporation owns and manages electric transmission networks in the United States and the United Kingdom.

11. Xcel Energy Inc.

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Xcel Energy Inc. is a publicly listed utility holding corporation with headquarters in Minneapolis, Minnesota, in the United States. It is the Midwest’s biggest supplier of both natural gas and electricity.

The company’s asset portfolio contains eight states regulated electric and natural gas utilities. It is publicly traded on the New York Stock Exchange under the stock symbol “XEL.”

12. Pinnacle West Capital Corporation

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A holding company for public utilities, Pinnacle West Capital Corporation (PNW) engages in regulated water and electricity operations in the US through its subsidiaries.

APS provides electric services in central, northern, and southern Arizona, including the main cities of Phoenix and Tucson. TEP’s regulated retail electric service in southeast Arizona serves the Tucson metropolitan region.

13. Comcast

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Comcast is the biggest cable provider in the US and provides high-speed internet, television, telephone, and other services.

Comcast is an excellent option if you’re looking for a dependable and economical solution in the public utility sector.

Wrapping Up: What Companies Are In The Public Utilities Field?

We hope this article answers “what companies are in the public utilities field.”

Companies that offer essential daily amenities like power, water, electricity, and natural gas make up the utility sector, one of the industrial stock categories.

Investors typically purchase utility stock as a long-term investment. Both the prices and dividend income of these stocks are frequently steady.

Some financial analysts predict that the utility industry will experience rapid growth in the 2020s due to the transition to “clean” energy, legislation fostering competition, and a presidential government committed to renewable energy sources.

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