PG&E's Woes Have Spread to New York's ConEd, 3,000 Miles Away
(Bloomberg) -- PG&E Corp.’s woes are spreading to the East Coast.
New York’s Consolidated Edison Inc., which owns renewable energy projects that sell power to the California utility, was downgraded Friday by Bank of America Merrill Lynch analyst Julien Dumoulin-Smith, saying there’s a “good likelihood” PG&E will reject the contracts.
ConEd acquired solar, storage and wind assets in December through a $1.6 billion deal with Sempra Energy. Dumoulin-Smith cut his ConEd rating to neutral, from buy, and reduced his price target to $80 per share from $83. He also cited the utility’s 12.5 percent interest in the Mountain Valley Pipeline project in the Virginias, which has been beset with construction delays and cost overruns.
ConEd spokesman Allan Drury said in an email the utility is aware of PG&E’s potential bankruptcy and “will monitor any developments.” ConEd shares fell 0.6 percent to $76.55 at 12:51 p.m. in New York.
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