Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date AES Corp Buy<28 24.64 2.44 43.81 -0.66 0.15 39.1 B 7/30/2021 8/16/2021 5.3 77.2 Utility, Renewable (NYSE: AES) Energy Shares of leading renewable energy generator and developer are low priced at 14.3 times expected next 12 months earnings with Moody's upgrade to investment grade credit rating nearing. Alto Maipo hydro project in Chile is on track for full operations in December, company has built 100% of tunnels and starts negotiations for permanent financing, remaining financial share of project is $46 mil, has invested $972 mil. Asset encumbered by lower spot prices for output due to faster than expected Chilean renewables build, output limited by drought in country near term but financial risk to parent now appears low. Company plans 72 megawatt of new solar capacity in Michigan for in service by mid-2022. Earnings guidance mid-point remains $1.54 per share in 2021, 7-9% annual profit growth rate target through 2025. Quality Grade B (No Change). AGL Energy Buy<7 4.9 6.33 -50.46 -23.89 0.25 100 C 8/24/2021 10/6/2021 -6.6 36.6 Int'l Electricity (OTC: AGLXY, ASX: AGL) See August 13 Alert "AGL Bottoming, Algonquin a Buy." FY2021 (end June 30) are in line with management guidance, FY2022 net profit after tax on which dividends are set is expected to be 25-30% lower on weak wholesale power market. Spinoff of coal-fired generation progresses as management announces HQ move to Melbourne for both post-split companies as part of cost cutting strategy. Shareholder vote on splitup of company now scheduled for June quarter of 2022, with close to follow shortly. Ramps up battery storage expansion in alliance with technology group Wartsila, plans 1 gigawatt of grid-level capacity in Australia. Management promises more details on split up of company this month. Quality Grade C (No Change). Algonquin Power & Buy<16 15.64 4.36 18.8 1.53 0.17 49.7 A 9/29/2021 10/15/2021 10 43.2 Utility/Renewable Utilities Energy (NYSE: AQN, TSX: AQN) See August 13 Alert "AGL Bottoming, Algonquin a Buy." Company expected to be a bidder for potential sale of American Electric Power's Kentucky utility unit, would have opportunity to raise 4.8% return on equity closer to 9.3% state allowed ROE and to replace coal-fired fleet as did in Missouri following Empire District acquisition. Odds of acquiring American Water Works' New York water utility unit appear to take a hit from state's political upheaval though management says it's still going through the "settlement process." Building microgrid in California to potentially take transmission lines out of service during wildfire season. Company says it's on track to achieve 75% renewable energy generation by 2023. Quality Grade A (no change). Allete Buy<70 67.44 3.74 30.31 -1.93 0.63 80 B 8/13/2021 9/1/2021 4.2 39.4 Regulated (NYSE: ALE) Elec/Gas Upgrading grid in Minnesota and Wisconsin with Oracle data/meter systems to improve efficiencies and cut costs, now as 100% advanced meter deployment in Minnesota. Investment goes into rate base. Small size at $3.5 bil plus market cap and modest earnings multiple (18.9 times expected next 12 months earnings) increase takeover appeal. Mid-point of 2021 earnings per share guidance range is still $3.15. Quality Grade B (No Change). Alliant Energy Corp Hold 61.47 2.62 18.75 6.51 0.4 62.5 A 7/29/2021 8/16/2021 6.3 54.9 Regulated (NYSE: LNT) Elec/Gas Stock now appears fully priced at 25 times expected next 12 months earnings, but operating risk is low with Wisconsin regulators set to approve plan to retire Edgewater coal plant next year, including a 9.8% return on remaining book value of facility through 2045. Mid-point of the 2021 earnings guidance range is $2.57 per share, with company "currently tracking toward the upper half." Quality Grade A (No Change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Altagas Ltd Buy<22 20.41 3.89 68.2 1.27 0.08 57.9 B 8/24/2021 9/15/2021 -22.8 53 Gas Utility/Energy (TSX: ALA, OTC: Transport ATGFF) Mix of focused midstream natural gas assets in Canada and regulated natural gas utilities in US continues to perform well. Asset sales needed to cut debt may get a lift from strong natural gas prices in second half of year. Expansion of RIPET propane export facility in western Canada has been slowed by exposure to volatility in commodity spreads and volumes but still moving ahead. Wall Street consensus remains bullish with 14 buys, 1 hold and no sells among analysts tracked by Bloomberg Intelligence. Mid-point of 2021 normalized earnings per share guidance is CAD1.725. Quality Grade B (no change). Altice USA Buy<30 28.27 N/A 6.08 -16.31 2.04 0 B 6/7/2018 6/6/2018 N/A 104.6 Communications (NYSE: ATUS) Company should be able to finance $2.3 bil in higher cost debt due later this year including $1 bil with 6.75% coupon with substantial interest cost savings. Facing tougher competition from fiber broadband networks as AT&T and Verizon report record additions. End game still appears to be acquisition as company operates valuable territory and trades at discounted valuation with enterprise value of 8.5 times trailing 12 months EBITDA. Quality Grade B (no change). Ameren Corp Hold 88.11 2.5 14.62 2.96 0.55 56 A 9/7/2021 9/30/2021 5.2 56 Regulated (NYSE: AEE) Elec/Gas US Court of Appeals reverses a portion of ruling that company must install scrubbers at Jefferson County coal-fired power plant but facility is likely to be retired to cut costs and push utility net zero CO2 target of 85% by 2040. Missouri poses challenge on energy transition cost recovery due to affordability issues. Illinois rates adjusted upward with benchmark interest rates. Mid-point of 2021 earnings guidance range is $3.75 per share. Quality Grade A (No Change). America Movil Buy<18 18.82 2.13 58.74 23.59 0.2 54.2 B 7/15/2021 7/26/2021 5.8 70.1 Intl (NYSE: AMX, MM: Communications AMXL) Odds of successful sale of TracFone unit in US grow with Verizon guarantees on rates. Company says it won't raise its rates for residential or commercial customers in Mexico through end of 2022, wants more "tariff freedom" from regulators. Competition likely lessened by AT&T sale of Vrio Latin American satellite business. Mexican peso value is stable. Claro unit boosts content with Paramount+. Mistral subsea cable connecting Guatemala with southern Chile is now in service, company is partner as well as network beneficiary. Quality Grade B (No Change). American Electric Buy<85 90.41 3.27 18.34 5.97 0.74 63.7 A 8/9/2021 9/10/2021 6.1 62.3 Regulated Power Elec/Gas (NYSE: AEP) Mid-single digit percentage dividend increase appears likely next month. Moody's changes outlook for Ohio unit to negative from stable as regulation in state is a concern but unlikely to affect either earnings growth or cost of capital for geographically diversified utility. Ramps up solar buildout in alliance with privately held Doral LLC. Mid-point of 2021 earnings guidance range is $4.65 per share excluding one-offs, 5-7% target long-term annual growth rate. Quality Grade A (No Change). American States Hold 93.33 1.56 23.29 18.76 0.37 55.8 A 8/13/2021 9/1/2021 9.6 47.8 Regulated Water Water (NYSE: AWR) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Insiders are heavy sellers following stock's most recent surge, another sign of high valuation as a major headwind with shares selling for nearly 37 times expected next 12 months earnings. California rate deal should help stabilize earnings but drought conditions are a long-term risk. Quality Rating A (no change). American Tower Hold 302.01 1.68 23.26 14.38 1.27 53.6 B 6/17/2021 7/9/2021 19.1 88.5 Communications Corp (NYSE: AMT) Low single digit percentage sequential dividend increase on tap for later this month. Company appears to integrate Telxius assets accretively as acquisition-led growth continues. High valuation is an increasing headwind to shareholder returns with stock trading at 31.7 times trailing 12 months funds from operations and yielding just 1.7%. Quality Grade B (No Change). American Water Hold 185.15 1.3 31.14 18.76 0.6 57 A 8/9/2021 9/1/2021 9.8 63.1 Regulated Water Works (NYSE: AWK) Adds to Illinois water utility presence with purchase of Village of Livingston system, files for $2.1 mil rate increase in Hawaii to pay for infrastructure replacement, closes purchase of Wastewater One LLC system in Indiana following regulators' OK. Mid-point of 2021 earnings guidance range remains $4.23 per share, long-term growth rate of 7-10% per year. Political turmoil in New York is a risk to closing sale of water utility operations in state to Algonquin Power & Utilities by new target date of January 3, 2022, may face municipalization push instead as well as "special franchise tax." Quality Grade A (no change). APA Group Buy<8 6.7 5.78 -9.45 -4.2 0.27 65 A 6/29/2021 9/15/2021 4.5 77.1 Int'l Energy (OTC: APAJF, ASX: Transport APA) Management forecasts 3.9% dividend growth for FY2022 (end June 30), up from 2.1% bump in FY2021, target is 60-70% of annual free cash flow, plans funding CAPEX excluding M&A with internally generated cash flow. Net profit is lower by -99% from a year ago due to writedowns of certain assets, underlying EBITDA is lower by -1.3% but at high end of guidance range. Company says "increased investment opportunities" (revenue up 0.6%) largely offset negative impact of "softer contract renewals" and some higher costs. Holdings now include natural gas pipelines and related infrastructure as well as wind farms in every mainland Australian state and territory. Management says it's still considering US investment despite lack of suitable deals to date, new project development pipeline is AUD1.3 bil, including 25% boost in transport capacity between Queensland and country's populous southeast. Quality Grade A (No Change). Artesian Resources Buy<42 39.27 2.66 16.58 -3.45 0.26 57.5 A 8/6/2021 8/20/2021 3 50.3 Regulated Water Corp (NSDQ: ARTNA) Low single digit percentage dividend increase is on tap later this month. Will buy Tidewater Environmental Services unit of Middlesex Water for $6.4 mil, adding 3,600 regulated wastewater customers in Delaware. Middlesex to keep water customers in state at least for now. Deal needs approval of Delaware regulators, expected to close by end of 2021. Company remains a takeover target selling at 22.6 times expected next 12 months earnings and with attractive service territory near Delaware beaches. Quality Grade A (No Change). AT&T Buy<32 27.56 7.55 0.6 -4.1 0.52 54.2 A 7/8/2021 8/2/2021 1.5 50.5 Communications (NYSE: T) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Stock price appears held back by spectre of still to be determined dividend cut following spinoff/merger of Warner Media with Discovery (NSDQ: DISCA) expected next year. Sale of Latin American satellite unit Vrio and Crunchyroll ($1.2 bil), DirecTV spinoff will further focus operations on fast growing 5G and fiber broadband operations, boost balance sheet and should eventually benefit shares' very low valuation of 8.6 times expected next 12 months earnings. Wins contract to provide 5G service to GM 2024 vehicle models. Management affirms robust CAPEX projection of $22 bil this year, projected free cash flow is still nearly $26 bil. Quality Grade A (No Change). Atlantica Buy<38 38.16 4.51 41.29 6.27 0.43 85.7 A 8/30/2021 9/15/2021 10.5 78.2 Renewable Sustainable Energy Infrastructure (NSDQ: AY) Management is likely to keep dividend growth rate conservative going forward and in line with ability to fund expansion projects at least mostly internally with some reliance on burgeoning green bond market. Algonquin Power & Utilities (44.18 percent owner) is likely to remain opportunistic with pace of asset drop downs but expansion mindset makes them likely so long as yieldco commands premium valuation. Company has been effective in reducing cost of financing but has room for more with weighted average fixed coupon rate of 5.13% with 9.56 year weighted term, North America appears to be primary focus of expansion next few years. Quality Grade B (No Change). Atmos Energy Corp Buy<105 97.5 2.56 2.9 -2.57 0.63 49.5 A 8/20/2021 9/7/2021 8.8 41.3 Regulated (NYSE: ATO) Elec/Gas Upper single digit percentage dividend increase still looks likely in November. Mid-point of FY2021 (end Sept 30) earnings guidance range is still $5 per share as pipeline replacement remains powerful driver of growth. Company is likely to see funds in FY2022 from securitization of $2.1 bil in extraordinary purchased natural gas costs (Winter Storm Uri), boost in credit outlook to "stable" from "negative" by S&P and Moody's shortly after. May see opportunity for regulated rate base investment in Colorado next year. Shares appear undervalued at 18.9 times expected next 12 months earnings given low risk and locked-in rate base growth in pro-natural gas states. Quality Grade A (No Change) AusNet Services Buy<1.50 1.95 4.87 10.93 9.24 0.06 50 A 5/20/2021 6/24/2021 0.9 73 Int'l Energy (ASX: AST, OTC: Distribution SAUNF) May bump up FY2022 dividend guidance of AUD9.5 cents per locally traded share slightly as faces few risks to modest full-year guidance. Australian dollar remains severely discounted to US dollar and promises upside for US dollar price as energy price cycle continues. Primary owners Singapore Power (30.87%) and State Grid (19.75%) have a patient, long-term approach to managing the assets.Quality Grade A (No change). Avangrid Buy<52 54.68 3.22 16.4 3.31 0.44 74.9 A 9/2/2021 10/1/2021 0.6 41.6 Utility/Renewable (NYSE: AGR) Energy Management says it has reached settlements with all 24 intervenors participating at August hearings for PNM merger in New Mexico last month, including New Mexico Public Regulation Commission staff. Hearing Examiner will likely deliver recommendation next month to full commission, with a final ruling by the end of the year. Approval appears likely with a close by early 2022, with conditions agreed to by management so far not derailing deal economics. US Bureau of Ocean Energy Management launches Environmental Impact Study for Kitty Hawk offshore wind project in North Carolina/Virginia as project advances regulatory process, has 2.5 gigawatt potential capacity and could enter service late decade, company's Vineyard project in Massachusetts is on track to deliver power starting in 2023 (800 megawatts). Sticks to 6-8% long-term earnings per share growth guidance. Quality Grade A (No Change). Avista Corp Hold 42.44 3.98 19.2 -4.19 0.42 82 A 8/18/2021 9/15/2021 4.3 54 Regulated (NYSE: AVA) Elec/Gas Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Company requests 10.6% natural gas utility purchased gas adjustment increase in Washington, -0.1% revenue decrease for electricity sold to residential and small farm customers to account for change in wholesale power costs. Regulators are likely to approve substantially in current form, failure to do so could signal new round of tensions for company. MId-point of 2021 earnings guidance range is $2.06 per share, is $2.13 for 2022. Quality Grade A (no change). BCE Buy<50 52.49 5.33 30.19 5.33 0.88 84.7 A 9/14/2021 10/15/2021 5.4 55.2 Intl (NYSE: BCE, TSX: Communications BCE) Moody's affirms credit rating with stable outlook, cites expectation of debt leverage reduction in next 12 months. Company's CAD2.074 bil in 3.5 GHz spectrum auction purchases in Canada appear likely to accelerate its 5G reach and uptake from customers, as company continues to roll out fiber to the premises broadband. Sells 10-year (2.15%) and 30-year bonds (3.2%) at attractive coupon interest rates, affirming ability to access low cost capital. Free cash flow after CAPEX will cover dividends with room to spare in 2021-22 despite robust expansion spending. Shares fully priced above highest recommended entry point of 50. Quality Grade A (No Change). Black Hills Corp Hold 71.49 3.16 32.13 5.23 0.57 57.9 A 8/17/2021 9/1/2021 6 58.6 Regulated (NYSE: BKH) Elec/Gas Mid-point of 2021 earnings guidance range is still $3.90, is $4.05 for 2022. Mid-single digit dividend increase is likely next month. Company sells 3-year notes at low coupon interest rate of 1.037%, proceeds to pay term loans. Management says it's cut CO2 emissions at electricity operations by 30% from 2005 levels, targets 70% by 2040 with minemouth coal-fired power plants the biggest continuing source, expects to use more renewable natural gas from farms in system going forward. Quality Grade A (No Change). Blackrock Utilities, Buy<26 27.07 5.36 30.08 1.16 0.12 203.3 B 9/14/2021 9/30/2021 0 N/A Closed-End Fund Infrastructure & Power Opportunities (NYSE: BUI) Closed-end fund holding high quality infrastructure stocks with a focus on renewable energy returns to modest premium to net asset value (4.3%). NextEra Energy (7.3%) was largest holding as of mid-2021, with electric companies overall the largest sector at 47% and the US the most represented country at 51.19% of total portfolio. Distributions paid for fiscal year through August 31 are 18% investment income, 29% net realized long-term gains and 53% return of capital (includes return of capital distributions paid by individual holdings. Lack of debt leverage limits risk to future market selloffs. Quality Grade B (No Change). Boralex Buy<35 31.04 1.67 25.07 0.3 0.17 45.5 A 8/30/2021 9/16/2021 3.2 79.2 Renewable (TSX: BLX, OTC: Energy BRLXF) Latest onshore wind auction in France for future projects is undersubscribed with a gap-to-target of 4 gigawatts plus new capacity by 2038, results are positive for existing operators and winners like Boralex, which will have higher contracted prices for output when facilities enter service. Company won 260.7 megawatts of bids (third most) in Rounds 1-7, none in Round 8, but may have more opportunities going forward unless competition increases significantly. Auction wins are positive for company's aggressive growth targets, though dividend appears unlikely to change as cash flow is priorized for CAPEX. Quality Grade A (No change). BP Buy<30 24.78 5.21 27.86 -8.54 0.33 74.4 B 8/12/2021 9/24/2021 -19.4 48.9 Super Major (NYSE: BP, LSE: BP) Oil/Gas Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Launches low-ball bid for the 45.65% of BP Midstream Partners (NYSE: BPMP) currently held by the public, close by end of year on substantially the same terms appears likely and will boost cash flows from assets. Indonesia approves carbon capture and storage plan at Tangguh LNG project, includes potential additional recovery of 1.3 trillion cubic feet of gas from adjacent gas fields with estimated project startup of 2026 assuming favorable final investment decision ($2 bil project). Iran approves spin off of operations in country, part of BP refocus on low-CO2 emission investments, including renewable natural gas network in Iowa and California, green hydrogen development. Quality Grade B (no change). Brookfield Buy<40 41.67 2.92 64.44 -10.48 N/A 75.9 A 8/30/2021 9/29/2021 -2.4 45.4 Renewable Renewable Energy Energy Partners (NYSE: BEP, TSX: BEP-U) DataSite pact may help company accelerate development of new projects and acquisitions on a global basis. Management appears to prioritize CAPEX for growth but should continue to maintain target 5-8% annual payout boosts as policy. New contracts with corporations trying to go green, repowering older wind facilities are strong and sustainable catalysts for long-term growth. Company is likely to maintain a 75% developed country/25% developing country revenue mix for next few years. C-Corp shares now trade at a roughly 9% premium to partnership units of company, likely to stay in that range going forward. Quality Grade A (No Change). BT Group Hold 2.22 N/A N/A N/A N/A 0 D 5/7/2020 N/A N/A 66.2 Intl (OTC: BTGOF, LSE: Communications BT) No dividend paid since February 2020. Company appoints new Chairman to start in December, joining board as independent nonexecutive director in November. Deutsche Telekom owns 12.06% of company, Altice UK 12.1%. Primary focus remains rolling out fiber broadband network across UK, pricing remains heavily scrutinized by UK regulators despite powerful competition. Quality Grade D (no change). California Water Hold 64.49 1.43 42.84 14.22 0.23 50.8 A 8/6/2021 8/20/2021 6.7 56 Regulated Water Service (NYSE: CWT) Successful resolution of regulatory issues are critical for earnings and dividend growth going forward. Keys in next 12 months are company request to spend $1.02 bil on water utility infrastructure in California for 2022-24 along with new rate design to replace demand decoupling in Water Revenue Adjustment Mechanism, rate cases in Washington state, New Mexico. Relations with officials appear to remain amicable with California recently approving an acquisition. Stock is priced for perfection at nearly 40 times expected next 12 months earnings. Quality Grade B (no change). Canadian Utilities Buy<28 28.48 4.92 21.63 -1.66 0.44 62.9 A 8/4/2021 9/1/2021 4.9 57.2 Int'l Electricity (TSX: CU, OTC: CDUAF) Brings new distributed solar project on line in partnership with Vuntut Gwitchen First Nation in Alberta, will buy energy under 25-year contract and redistribute to power grid. Still needs Canadian federal approval for acquisition of Pioneer Pipeline for CAD265 mil. Sudden passing of CFO is a blow but utility should have the bench to ensure continuity. Quality Grade A (no change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date CEMIG Buy<2.50 2.58 3.21 49.74 -3.73 0.06 51.7 C 5/3/2021 7/12/2021 12.4 46.2 Int'l Electricity (NYSE: CIG, BZ: CMIG4) Q2 revenue rebounds by 34%, EBITDA up 39% and net income 80% from pandemic-affected prior year quarter (commercial sales up 8.8%, industrial up 19.6%). EBITDA is also up 17% for the first six months of 2021 from 2018 levels, demonstrating success of longer-term strategic measures taken the past few years to lift profitability. Operating expenses are -10% lower than "maximum regulatory limit" as company continues to bring down costs. Also cuts currency exposure by buying back Euro-denominated debt. Renewal of hydroelectric concessions is critical issue, currently extended to 2027 after two year boost. Quality Grade to C from D on success of strategic plan improving revenue reliability, operating efficiency and balance sheet strength. CenterPoint Energy Buy<27 25.94 2.47 34.02 2.74 0.16 50.8 B 8/18/2021 9/9/2021 -17 63.2 Regulated (NYSE: CNP) Elec/Gas Mid-point of 2021 earnings guidance range is $1.26 per share, with projected 8% earnings growth at high end of 6-8% target range. Company's 7% preferred stock has mandatorily converted to common stock at the maximum exchange rate of 1.8349 CNP shares on Sept 1, after making one additional dividend payment of 87.5 cents per preferred share. Sale of 53.65% common unit and 50% of general partner stake in Enable Midstream (NYSE: ENBL) to Energy Transfer LP (NYSE: ET) still appears likely to close by end of year, despite ongoing US anti-trust review, would likely be an upside catalyst for shares. Quality Grade B (No Change). Centrica SELL 2.92 N/A 21.45 -2.18 N/A 0 D 10/8/2020 N/A N/A 79.3 Int'l Electricity (LSE: CNA, OTC: CPYYY) No dividend this year, resumption is uncertain though management has promised to announce a "new financial structure" in November. UK price cap and increasingly competitive retail energy market are long-term threats to revenue and financial health as market share losses continue. Higher oil and gas prices should help with sale of exploration and production business though a deal has proven to be illusive so far and UK regulators are under pressure to clamp down on sector. Sale of minority stake in UK nuclear reactors appears less likely now. Quality Grade D (no change). Charter Hold 811.33 N/A 34.32 18.85 N/A 0 A N/A N/A N/A 73.5 Communications Communications (NSDQ: CHTR) Management targeting wireless customer growth with 3 mil users as of end of Q2 and 3.5 mil targeted for end of year and 7 mil for 2024, utilizes Verizon 4G network under MVNO deal (Mobile Virtual Network Operator). Rural buildout of fiber broadband network is potential driver, with US infrastructure spending a possible catalyst. Company sells $2 bil in bonds due 2034 at modest coupon interest rate of 4.25% for sub-investment grade rating of BB+ (stable outlook) from S&P. Liberty Broadband owns 30.44% of company's common shares and is dominant owner. Quality Grade A (No change). Chesapeake Utilities Hold 130.77 1.47 64.21 12.82 0.48 39.2 A 9/14/2021 10/5/2021 10.2 50.4 Regulated Corp Elec/Gas (NYSE: CPK) New $400 mil credit facility should lower costs and enable financing of further expansion. Target mid-point of 2025 earnings per share is $6.15. Stock is fully priced to that level at 21.5 times expected next 12 months earnings, 27.3 times next 12 months earnings expectations. Insider selling last month sounds caution about high level of valuation though underlying business is healthy and growing predictably. Quality Grade A (no change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Chevron Corp Buy<125 97.49 5.5 25.69 -8.86 1.34 49.8 A 8/18/2021 9/10/2021 5.8 26.6 Super Major (NYSE: CVX) Oil/Gas Offshore Gulf of Mexico facilities appear undamaged by Hurricane Ida, though Pascagoula refinery turnaround on Mississippi Gulf Coast is likely pushed out to early October. Company and partner waste solutions manager Brightmark LLC are now developing 28 plants in 7 states to produce biomethane from dairy farms to fuel long-haul trucks, first facility to start up production later this year. Company wants to push offshore Brazil pre-salt production but with better government incentives. Shares of super oil are still priced more than -20% below pre- pandemic level though oil price is about 15% higher, argues more upside as investors lose fear of another cyclical downturn in energy. Quality Grade A (No Change). China Gas Holdings Buy<105 74.09 3.78 6.11 -18.99 1.45 29.3 B 8/20/2021 10/15/2021 17.5 45.9 Int'l Energy (OTC: CGHLY, Hong Distribution Kong: 384) Signs cooperation pact with Xiangyang City in Hubei Province, targets increased urban heating with gas, "smart city and towns" construction and ramping up of industrial Internet. Focus on improving profitability of new connections slows adoption rate but should improve margins and reduce safety risk in aftermath of Shiyan incident. Stock is now priced for slower growth rate at just 10 times expected next 12 months earnings. Quality Grade B (no change). China Mobile Delisted N/A 7.42 N/A N/A 1.13 53.7 B 4/30/2021 6/1/2021 1.2 5.5 Intl (NYSE: CHL, HK: Communications 941) Boosts semi-annual dividend by 6.5%. First half 2021 profit is higher by 6% on 13.8% lift in revenue, management credits cost efficiencies but comapny is also seeing strong 5G uptake with overall base increased by 3.6 mil and 5G users to 250 mil. Average revenue per user growth accelerates to 3.8% year-over-year in Q2 from 1.1% in Q1. Also posts sequential boost in EBITDA margin with strong cost controls more than offsetting 5G marketing expense. Biden Administration will continue to forbid US investors owning shares in company. Now plans $8.6 bil Shanghai initial public offering. Hong Kong-listed shares trade for roughly HKD48, giving former ADRs a value of $30 and change. Quality Grade B (No Change). China Unicom Delisted N/A 3.81 N/A N/A 0.26 40.2 B 5/19/2021 6/28/2021 46.3 11.5 Intl (NYSE: CHU, HK: Communications 762) Semi-annual dividend for payment this month is second paid in calendar 2021, with total payout nearly twice previous year's. Chairman and CEO resigns, age cited, has deep management bench from which to promote. First half 2021 profit is up 21.1% on 9.2% lift in revenue. 5G rollout success is a key driver as overall subscriber numbers rebound from a year ago. Plans to spin off Internet of Vehicles unit. Fixed line revenue is up 7.7% from year ago on demand from industry customers, partly offset by sequential slowdown in wireless sales. Local shares sell for roughly HKD4.25, ADRs (10 ordinary shares) are worth approximately $5.47. Quality Grade C (No Change). Chunghwa Telecom Hold 40.28 2.99 14.55 0.9 1.55 100 B 8/24/2021 10/5/2021 -0.2 8.9 Intl (NYSE: CHT, TT: Communications 2412) Plans NT1 bil investment in undersea communications cable to link Taiwan, Japan, Singapore, Guam, the Philippines and Indonesia, expected to be completed in 2024. Wireless unit reports 1 mil 5G users as company continues to have market leading position. Company also "exploring partnerships" with Elon Musk's Starlink project for low Earth orbit satellite communications. Stock is 35.29% owned by Taiwanese government. Quality Grade B (No Change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Cincinnati Bell Acquired 15.48 N/A 2.45 0.19 N/A 0 D 8/4/1999 N/A N/A 110.5 Communications (NYSE: CBB) Company says it now has all needed regulatory approvals to be acquired by Macquarie unit for $15.50 per share in cash. Deal to close on September 7, with cash to appear in investors' accounts shortly after. Will suspend coverage next month, company still has $2.016 bil in debt. Quality Grade D (No Change). Clearway Energy Buy<33 31.7 4.22 38.79 20.9 0.33 72.3 B 8/31/2021 9/15/2021 2.4 73 Renewable (NYSE: CWEN) Energy Will buy remaining 50% equity stake in 530 megawatt capacity Utah solar generation, facilities have operated since 2016 under 20-year contract with Berkshire Hathaway unit PacifiCorp (15 years remaining). Expect Q4 close, $9 to $11 mil incremental cash available for distribution starting next year with $335 mil cost financed in part with new non-recourse project level debt. Deal will support guidance dividend growth rate in 2022. Current 2021 guidance is for "the upper end" of annual dividend growth target of 5-8%, CAD of $395 mil pro forma ($1.85 per share). Now has 4.7 gigawatts of operating wind and solar projects, along with 2.5 GW natural gas. Quality Grade B (No Change). CLP Holdings Buy<11 9.86 2.96 6.31 -2.07 0.08 68.4 B 9/1/2021 9/22/2021 5.6 30.2 Int'l Electricity (OTC: CLPHY, HK: 2) Fitch affirms company credit rating at "A" with a stable outlook, cites "predictable cash flow" at regulated Hong Kong utility (65-70% of EBITDA). Key driver of growth is expected to be 43% rate base increase through 2023 at utility for grid enhancement and construction of new natural gas-fired power plants and import capacity. Australia (15-20% EBITDA) should get some lift from pandemic recovery, some strength in wholesale electricity prices but still under pressure, offset by growth in China and India. Quality Grade B (No Change). CMS Energy Corp Buy<65 64.96 2.68 8.29 4.45 0.44 66.2 A 8/5/2021 8/31/2021 6.8 71.5 Regulated (NYSE: CMS) Elec/Gas Natural gas unit sees rate base growth with infrastructure spending, looks at renewable natural gas development and hydrogen blending as decarbonization solutions. Mid-point of 2021 earnings guidance range is $2.63 per share, 2022 is $2.86 with long-term growth rate of 6-8% annually, predictability of results is due to focus on rate base investment. Quality Grade A (No change). Cogent Hold 74.81 4.3 17.4 0.24 0.81 151 C 8/19/2021 9/3/2021 14.6 131.7 Communications Communications Holdings (NSDQ: CCOI) Recovery in demand for services from business appears less certain as companies shift home/work balance for employees with result of potential permanent downsizing of office space. Hyper-aggressive dividend payout policy is based on cash flow, depends on management remaining comfortable with high leverage. Will need pick up in sales growth to maintain current pace of increases. Credit rating outlook is rated "stable" by both Moody's and S&P but ratings are just B2 and B+, respectively, deep in junk territory with $1.193 bil in total obligations. Payout ratio is 151% based on free cash flow. Quality Grade C (No Change). Comcast Corp Buy<55 61.72 1.62 41.53 8.75 0.25 29.8 A 10/5/2021 10/27/2021 11.4 54.9 Communications (NSDQ: CMCSA) Business unit acquires cloud services company Masergy, plans to leverage fiber broadband network to increase security and efficiency of customers' global networks. Streaming deal with ViacomCBS to launch SkyShowtime in Europe should reduce cost of expanding reach. New business, broadband and NBCUniversal recovery from pandemic year are far offsetting continuing loss of basic cable users on top and bottom lines. Valuation is a potential emerging issue for stock but no major operating issues for company. Quality Grade A (No Change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Consolidated SELL 9.13 N/A 23.05 8.82 N/A 0 D 4/25/2019 N/A N/A 83.5 Communications Communications (NSDQ: CNSL) Tentative agreements reached with unions in northern New England will likely boost costs but provide additional predictability as well. Main issue for company is reversing years of continuous revenue declines by greater emphasis on broadband fiber business, but little sign yet company is holding its own against competition especially in corporate market. Debt of $2.15 bil is still more than twice current market capitalization of stock. Quality Grade D (No Change). Consolidated Edison Hold 76.3 4.06 8.78 -0.23 0.78 72.9 B 8/17/2021 9/15/2021 2.9 56.8 Regulated (NYSE: ED) Elec/Gas Company appears to have weathered recent summer storms without incurring meaningful performance penalty. S&P affirms credit rating of A- with negative outlook. New York state ruling in National Grid case incorporates climate impact, management says in mid-August briefing that utility is focusing on carbon footprint across operations, including natural gas distribution utility. Has $300 mil in rate based electric vehicle charging stations investment planned through 2025. Mountain Valley pipeline faces critical decision from courts relating to Endangered Species Act, likely in Q1. Loss in case would increase project costs, could doom it and trigger writeoff though won't threaten dividend even in a worse case. Mid-point of 2021 earnings guidance range is $4.25 per share. Quality Grade B (no change). Consolidated Water Buy<14 12.08 2.81 7.63 -4.87 0.09 89.5 C 9/30/2021 10/29/2021 1 0.9 Int'l Water (NSDQ: CWCO) Q2 revenue is -13% less than a year ago. Service revenue up 8.3%, bulk water up 14.4% but more than offset by -5% drop in retail and -85% lower manufacturing revenue due to reduced orders from a major customer. Management says manufacturing is on course for rebound with new customers signed on, PERC unit waiting on $55 mil in new contract bids, expects more opportunity from increased US infrastructure spending next year. Q2 gross profit is lower by -17%, swings to net loss from continuing operations. Company also has net loss in first half of year as pandemic has impact on utility operations in Caribbean region. Has liquidity to support current dividend rate but will need profit recovery longer term. Quality Grade C (no change). Contact Energy Ltd Buy<6 5.75 4.29 N/A N/A 0.26 145.3 B 8/26/2021 9/15/2021 3.5 22.6 Int'l Electricity (NZ: CEN, OTC: COENF) Semi-annual dividend for payment in September is lower by -8.7% from payment of a year ago as company adheres to conservative financial policy despite strong year and prospects for steady returns going forward. Management forecasts FY2022 dividend of 35 New Zealand cents per share, underlying earnings of NZD520 mil. Increased wholesale power prices are key driver of 24% higher revenue and 49.6% increase in net income for FY2021 (end June 30). Wholesale business EBITDA is up 24%, with higher thermal generation costs partly offsetting gains from increased prices. Results achieved despite more difficult hydro conditions, tighter natural gas supply at Pohokura field. Utility also seeing robust customer growth, decline in unpaid bills, efficiency from system digitalization. Quality Grade B (no change). Covanta Holding Hold 20.07 1.59 132.41 35.32 0.08 70 C 6/23/2021 7/2/2021 -31.6 89.3 Renewable Corp Energy (NYSE: CVA) Stock price is tracking prospects for takeover of company by Sweden-based investment company EQT Infrastructure for $20.25 per share in cash, close by end of Q4 still expected. Uncertain if dissent by major shareholder (1.7% ownership) to deal will be joined by others at this time. Moody's affirms Ba3 rating with stable outlook, reflecting company ability to retain cash following takeover rather than paying out as dividend. S&P revises outlook to positive from stable. Downside to share price from deal failure is likely mid-teens in near-term, though company appears well positioned to remain independent in longer term. Quality Grade C (No change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Crown Castle Hold 198.5 2.68 27.52 1.6 1.33 77.8 A 9/14/2021 9/30/2021 8.2 72.9 Communications International (NYSE: CCI) Mid-point of 2021 adjusted FFO guidance range is $6.835 per unit. Upper single digit percentage dividend increase is likely next month, following recent gains in profits. Towers business has new chief operating officer, expects "elevated activity" in business into 2022 as demand from Big 3 US wireless companies and DISH Networks remains strong. Management expects 1-2% annual churn rate in wireless towers operations, reliance on contracts boosts predictability of cash flow. Small cells are a key focus of build as 5G networks deploy. High valuation of stock with enterprise value 30.1 times trailing 12 months EBITDA is likely to be a headwind for stock going forward though price has backed off from July high point. Quality Grade A (No Change). Deutsche Telekom Buy<22 21.21 3.23 22.62 0.43 0.71 68.4 B 4/6/2021 4/15/2021 -2.5 65.7 Intl (OTC: DTEGY, GR: Communications DTE) Management boosts 2021 EBITDA guidance to over EUR37.2 bil, free cash flow after leases to over EUR8 bil. German growth is key catalyst, as in country wireles revenue advances 2%. Q2 revenue is lower by -1.7% but in line with estimates, free cash flow up 14% and adjusted net income up 65%. Fitch affirms BBB+ credit rating with stable outlook, cites leading position in European communications (33% and 56% of German wireless and broadband respectively) and US wireless though T-Mobile US. Plans to reach 23% of German households with fiber connections by 2024, full coverage by 2030. Management says it's now "in talks" to buyout SoftBank Group's remaining 8.5% stake in T-Mobile US (DT currently owns 43.16%). Quality Grade B (No Change). Dish Network Corp SELL 45.43 N/A 34.49 0.71 1 0 D 12/12/2012 12/28/2012 N/A 52.8 Communications (NSDQ: DISH) Will buy Los Angeles-based wireless MVNO Gen Mobile and take over brand. Q2 revenue advances 40.7% from year ago quarter on acquisition of prepaid wireless operations of the former Sprint, a condition of the T-Mobile US takeover. Diluted earnings per share up 35.9% for same reason. Transactions make comparisons difficult at top and bottom lines. Company loses another -2.5% of DISH satellite communications users, CEO again says merger with former AT&T unit DirecTV is "inevitable" though would likely be challenged by Biden Administration anti-trust policies. AT&T network sharing MVNO agreement does not help with Federal Communications Commission spectrum buildout requirements says management. Debt burden of $16 bil and junk credit ratings (S&P "B" with negative outlook) are still a big risk given big CAPEX needs. Quality Grade D (No Change). Dominion Energy Buy<85 78.38 3.22 3.31 3.25 0.63 65.5 A 9/2/2021 9/20/2021 -7.6 58.7 Regulated (NYSE: D) Elec/Gas Mid-point of 2021 earnings guidance range is $3.85 per share. Dividend increase in line with 6% annual growth target on tap for November. Reaches deal with Virginia governor to utilize Portsmouth Marine Terminal for development of offshore wind, starting with 2.6 gigawatt capacity Virginia Offshore Wind Project, will be serviced by vessel currently being built in Texas. Management still expects to complete sale of remaining natural gas midstream/pipeline assets by end of year. Sells $1 bil of 10-year green bonds at better than expected, low coupon interest rate of 2.25%, Fitch affirms BBB+ rating with stable outlook. Virginia triennial review filing includes $1.5 bil "clean energy" investment, largest amount to date. Quality Grade A (No Change). DTE Energy Hold 120.75 2.73 23.65 4.18 0.83 61.4 A 9/17/2021 10/15/2021 7.1 61 Regulated (NYSE: DTE) Elec/Gas Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Combined dividend of company and DT Midstream (NYSE: DTM) per pre-split DTE share increased to $1.125 per share, up from $1.085 per share as promised by management. Mid- point of 2021 earnings guidance is $5.77 per share. City of Ann Arbor, Michigan reportedly exploring creating own municipal utility, citing recent power outage at company and green energy ambitions, a long-shot risk to company at this time but reason not to chase stock past current valuation of nearly 22 times expected next 12 months earnings despite rate base spending opportunity. Quality Grade A (No Change). Duke Energy Corp Buy<100 105.68 3.73 35.76 5.11 0.99 76.5 A 8/12/2021 9/16/2021 2.6 56.7 Regulated (NYSE: DUK) Elec/Gas Mid-point of 2021 earnings guidance is $5.30 per share, with 5-7% annual profit growth target. Files new South Carolina CAPEX plan to close coal power plants by 2030 and ramp up spending on solar and wind. Federal Energy Regulatory Commission OK's sale of 20% ownership stake in regulated Indiana utility for $2 bil. Company to receive "at least" $215 mil from insurers in coal ash settlement, should get lift if North Carolina passes coal plant retirement legislation. Sells $1.1 bil in 10-year (2%) and 30-year (2.9%) bonds at lower than expected coupon interest rates, proceeds to pay off higher cost debt. Activist investor Elliott Management is still buying shares with $107 mil in Q2 purchases, has 0.13% ownership stake now. Quality Grade A (No Change). E.ON Buy<14 13.27 3.18 18.74 8.24 0.57 68.1 A 5/20/2021 5/28/2021 16.8 78.4 Intl Energy (OTC: EONGY, GR: EOAN) Raises full-year 2021 outlook after strong first half demand on colder weather, easing of pandemic pressures on customers. First half revenue up 8.3%, net income up 8.5-fold. Adjusted EBIT guidance mid-point raised to EUR4.5 bil from previous EUR3.9 bil, EBITDA mid-point to EUR7.7 bil from EUR7.3 bil, dividend growth still projected at 5%. Company network overall appears to weather Germany's historic summer floods but company is likely to ramp up spending to harden grid further as well as restoration efforts where needed. Management endorses green hydrogen development as eventual fuel for natural gas system. Upcoming German elections increase regulatory uncertainty but company appears ready for a center-right or center- left victory as strategy appears squarely aligned with country's consensus green energy goals. Quality Grade A (No Change). Edison International Buy<75 58.65 4.52 17.48 5.07 0.66 70.5 A 9/29/2021 10/31/2021 3.6 60.2 Regulated (NYSE: EIX) Elec/Gas Mid-single digit dividend increase looks set for December following amicable decision in California rate case. Key details include 7.6% rate boost for 2021, 5.5% lift in 2022 and 6% for 2023. Regulators also authorized $1.9 bil additional investment to insulate 4,500 miles of powerlines against fires (had asked for $3.4 bil to cover 6,272 miles), permission to buy $1 bil liability insurance coverage for third party-wildfire related claims. California Department of Justice won't levy criminal charges against utility for role in Woolsey Fire after probe "revealed insufficient evidence" of violations of state penal code, should close the book on company liability to past wildfires. Company has also navigated this wildfire season so far, which is shaping up as the worst in California history. Quality Grade A (no change). Electricite de France Hold 11.5 2.2 N/A N/A 0.21 80.6 C 5/12/2021 6/7/2021 -22.2 54 Intl Energy (OTC: ECIFF, FP: EDF) Impasse between French government (82.14% ownership) and European Union regulators over company regulation increases long-term uncertainty. Key sticking point is France's effort to ensure nuclear plants continue to operate by increasing revenue, wants to eliminate EDF rivals' current option of buying up to 25% of nukes' output well below market prices, EU says it's concerned about impact on "energy market competition." France also appears opposed to reorganization of company. Shares are likely to lag until resolution, though Moody's boosts outlook to stable from negative last month. Company may buy General Electric's nuclear operations. Quality Grade C (No Change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Emera Buy<45 47.44 4.32 21.92 1.98 0.64 64.9 A 7/30/2021 8/16/2021 4.2 62.5 Intl Energy (OTC: EMRAF, TSX: EMA) Mid-single digit dividend increase on track for early next month. Q2 earnings per share excluding items are higher by 12.5% from year ago period as lower financing costs and higher earnings at natural gas utilities more than offsets negative impact of softer US dollar on earnings from Tampa Electric unit. Florida utility likely to get boost from 3-year rate settlement starting in 2022. Rate base growth of 7.5-8.5% annually looks on track through 2023 at least, with 4-5% dividend growth next two years. Maritime Link power line now delivers low cost hydro output from Muskrat Falls to Nova Scotia, project was completed on time and budget, company will generate 60% of energy from renewable sources next year. Quality Grade A (no change). Enbridge Buy<42 40.03 6.66 36.53 4.23 0.84 67.3 A 8/12/2021 9/1/2021 8.6 51.2 Energy Pipelines (NYSE: ENB, TSX: ENB) Mid-point of full year DCF guidance is CAD4.85 per share, 5-7% annual growth rate. Company notifies oil shippers it will offer 620,000 barrels per day capacity on Line 3 pipeline starting October 1, full capacity is 760,000 bbls/day. Move signals construction of expansion/re-routing project is finishing up on schedule with last legal hurdles out of the way. Fill expected to start as soon as September 15. Time table is good sign company will start realizing cash flow from project in Q4, breakdown of system capacity is 350,000 bbls/day light crude oil and 270,000 bbls/day heavy oil with full capacity levels expected to be reached in Q4. Demand is robust as Line 3 is first major new pipeline to come out of Canada to alleviate congestion. Company may now restart Northern Gateway project to ship Alberta oil to Canada's Pacific Coast. Quality Grade A (No Change). ENEL Buy<12 9.13 2.6 8.28 -2.92 0.21 69.5 B 7/19/2021 8/12/2021 14.9 58.5 Intl Energy (OTC: ENLAY, Italy: ENEL) Upper single digit increase in semi-annual dividend to be paid In January likely to be announced in November as management stays with 2021 financial targets, including for dividend growth ("guaranteed" full-year payout of 38 Euro cents). Will acquire 527 megawatts of hydro capacity from ERG Hydro in Italy, company will now have 13 GW of hydro and 14.5 GW of combined renewable energy generating capacity in its home country. Close of purchase expected in Q1 2022. Company reaches green hydrogen development agreement with major shipbuilding company Fincantieri. Shares of leading global renewable energy generator and developer look cheap at 14.4 times expected next 12 months earnings, discount is at least partly due to aggressive CAPEX next several years for renewable energy and expectation it will be at least partly funded by new debt, but company is having no trouble at this point accessing capital markets cheaply.Quality Grade B (no change). Energy Transfer LP Buy<15 9.65 6.32 67.68 -8.99 0.15 29.8 C 8/5/2021 8/19/2021 -20.4 61.9 Energy Pipelines (NYSE: ET) Value of Enable Midstream acquisition has increased since announced earlier this year on recovery in natural gas prices, could generate $200 mil plus in excess cash flow post-merger up from initial expectation of $175 mil. US Federal Trade Commission still hasn't approved deal but management still outwardly confident it will close this year. Progress cutting debt, rise in energy price cycle going forward likely to more than offset any negative impact from winding down of ownership stakes in company after merger's close by Enable sellers Centerpoint Energy (6.5%) and OG&E Energy (3%). Odds Dakota Access Pipeline will survive court challenges and remain open appear to improve, in part because as tighter energy supplies have greatly worsened the consequences of disrupting supplies by shutting it down. Case is likely to weigh on share price until resolved despite partnership's improving business fortunes. Quality Grade C (No Change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Enersis Americas Buy<7.50 6.72 4.01 -4.8 -2.18 0.15 82.9 B 5/20/2021 6/9/2021 -15.1 35.9 Intl Electricity (NYSE: ENIA) Fitch affrims A- rating with stable outlook, cites "strong track record of delivery" on objectives, "diversified geographic footprint," "conservative leverage profit" and "strong relationship with Parent Enel SpA" (82.3% owner). Economic recovery of countries where company operates is key, particularly Brazil (37% of projected 2021 EBITDA) and Colombia (42%), with central American operations expected to contribute $400 mil to consolidated EBITDA in 2022. Argentina is just 3% of EBITDA limiting risk to that country. Quality Grade B (No change). Enersis Chile Buy<3 2.61 12.15 -24.05 -11.82 0.21 74.6 C 5/20/2021 6/9/2021 -17.5 31.7 Intl Energy (NYSE: ENIC) Affordability is emerging as key issue for Chilean energy, with company potentially squeezed between keeping costs down and converting system from fossil fuels to renewable energy. Presidential primaries in country result in candidates not likely to nationalize assets, though regulation is likely to tighten especially for water rights. Clarity could reduce now elevated cost of capital for Chilean utility business now. Parent Enel SpA owns 64.1% of company. Quality Grade B (No change). Engie Buy<15 14.28 3.45 7.58 -5.09 0.65 75 C 5/24/2021 6/15/2021 -8.9 52.9 Intl Energy (OTC: ENGIY, FP: ENGI) Mid-point for 2021 net recurring income is EUR2.5 bil. Signs 140 megawatt renewable energy supply contract with Google in Germany. Sells 857 megawatt capacity coal-fired power plant in Brazil for BRL325 mil, in talks to sell industrial maintenance and energy services unit in France for minimal and possibly negative price, may sell Indonesia geothermal portfolio as continues to streamline asset base and cut debt ($300 mil estimated pricetag). Brings 200 MW of new solar on stream in India as management focuses on renewable energy growth. Quality Grade C (No change). Eni Buy<25 25.1 3.2 44.68 -1.22 0.58 106.7 B 5/24/2021 6/10/2021 -24.8 45.8 Super Major (NYSE: E, IM: ENI) Oil/Gas Reports major oil discovery offshore Ivory Coast in Africa. CEO Claudio Descalzi expects oil price to "stabilize" between $70 and $75 per barrel in 2022. Rising free cash flow levels from strong energy prices will fund generous dividend, balance sheet strengthening and investment in renewable energy going forward. Quality Grade B (no change). Entergy Corp Buy<110 112.56 3.38 19.21 7.19 0.95 63.3 A 8/11/2021 9/1/2021 2.2 68.4 Regulated (NYSE: ETR) Elec/Gas Guidance for 2021 earnings is still "upper half" of guidance range of $5.80 to $6.10 per share. S&P cuts rating of Entergy Louisiana to BBB+ (stable outlook) and Entergy New Orleans to junk (BB+) with stable outlook, affirms overall rating at BBB+ (stable). New ratings reflect devastation from Hurricane Ida, uncertainty about restoration of electricity service and regulators' eventual reaction to utility's attempts at cost recovery but diversification and strong balance sheet protect combined company. Last merchant nuclear plant scheduled for closure next year, risk further reduced by sales of sites for decommissioning. Stock fully priced for risks from storm recovery when trading over highest recommended entry point (110) but indications at this point are company retains regulatory support for recovery and is systematically progressing with restoration. Quality Grade A (No Change). Enterprise Products Buy<33 22.81 7.89 44.07 -4.83 0.45 60 A 7/29/2021 8/12/2021 1.7 54.4 Energy Pipelines Partners LP (NYSE: EPD) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Next distribution increase not likely until January 2022 at low single digit rate as management will probably stick to conservative financial policies at this stage of the energy price cycle with subdued volume levels expected. Stock buybacks likely preferred near term to dividend boosts as they cut cash outlays. Focus on ethylene business and exports of NGLs continues to pay off with steady growth and business stability. Quality Grade A (no change). Essential Utilities Buy<50 49.43 2.17 21.46 4.97 0.27 60.2 A 8/12/2021 9/1/2021 7 55.2 Regulated Water (NYSE: WTRG) MId-point of 2021 earnings guidance range is $1.665 per share, with 5-7% compound annual profit growth target through 2023. Files for rate hike to recover $1.1 bil in system investment in Pennsylvania, including replacement of 400 miles of water mains and related infrastructure. Company is likely to receive most of request given prudency of spending and to date positive relations with regulators. DELCORA acquisition depends on PA state court decision, company continues to have success closing smaller deals in nationally fragmented US water and wastewater sector. Natural gas distribution unit in Pennsylvania produces stable returns. Quality Grade A (No Change). Evergy Inc Hold 68.5 3.12 36.89 10.07 0.54 69 A 8/19/2021 9/20/2021 8.8 54.4 Regulated Electric (NYSE: EVRG) Earnings guidance range mid-point is $3.30 per share, with 6-8% target annual growth rate through 2024, key driver is 5-6% annual rate base growth as company spends on improving grid reliability and renewable energy. Mid-single digit dividend increase looks set for early November. Activist investor Elliott Management continues to own 4.64% of company, though no new purchases made this year so far. Quality Grade A (No change). Eversource Energy Buy<90 91.99 2.62 9.95 12.13 0.6 62.3 A 9/15/2021 9/30/2021 6.1 55.2 Regulated (NYSE: ES) Elec/Gas Mid-point of 2021 earnings guidance range is $3.87 per share, long-term growth "in the upper half" of 5-7% yearly range. Sells 2-year (floating rate), 5-year (1.4%) and 10-year notes (1.95%) at better than expected coupon interest rates, demonstrating company's ability to continue to access low cost capital. Offshore wind projects appear to be progressing well toward Biden Administration approvals, turbine costs still declining and support projected mid-teens return on equity for investment. Quality Grade A (No Change). Exelon Corp Buy<48 49.82 3.07 39.11 10.12 0.38 54.6 A 8/12/2021 9/10/2021 3.9 53.8 Wholesale Power (NSDQ: EXC) Earnings per share mid-point of 2021 guidance range is $2.80. Illinois state senate passes legislation providing roughly $700 mil in support revenue to keep Byron and Dresden nuclear plants open, bill faces challenges from governor's demand that Prairie State coal plant cut emissions before 2045 closure, company says will close plants Sept 13 if no deal in hand but may be flexible if needed to close one. Federal Energy Regulatory Commission approves spinoff of nuclear power and retail operations from regulated utilities. Fitch may cut ratings on plan depending on details but new Illinois subsidy for Byron and Dresden would smooth the way. Still needs approval of New York Public Service Commission and Nuclear Regulatory Commission to complete spinoff, management expects them by year end with full separation in Q1 2022. Has reached deal with former nuclear power partner EDF to spur deal. Price hedges cover 98-101% of expected unregulated electricity generation. Quality Grade A (no change). ExxonMobil Corp Buy<65 54.87 6.34 50.56 -9.35 0.87 79.1 B 8/12/2021 9/10/2021 3.1 30.7 Super Major (NYSE: XOM) Oil/Gas Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Beaumont (Texas) refinery continues to run despite lockout of union workers as company continues to press permanent cost cuts. Focus on using free cash flow to debt reduction continues. Papua New Guinea government resumes talks with company on expansion of LNG project nearly two years after breaking them off, could lead to expansion of output as initially projected. Company explores converting refineries to production of renewable fuels, long standing attempt to sell shale gas assets in US may get a big lift from tighter market and higher prices. US Strategic Petroleum Reserve exchange with company to cover Hurricane Ida shortfall is promising for potentially less hostile relationship with current administration. Quality Grade B (No change). Ferrellgas Partners Hold 23.5 N/A 212.09 83.59 N/A 0 C 12/7/2018 N/A N/A 183 Propane LP Distribution (OTC: FGPR) Next earnings still expected for October 15. Key issue for propane distributor will be if added scale from recent acquisitions helps to control costs in seasonally weak period for heating demand where NGL prices have been volatile. April 2029 bonds still yield an elevated 6% plus to maturity. Lack of dividend distribution limits appeal of partnership units until company can demonstrate sustainable profitability. High levels of debt (4.5 times current market capitalization) limit appeal of company as takeover target. Quality Grade F (No Change). First Solar Hold 94.06 N/A 30.53 24.02 N/A 0 C N/A N/A N/A 8 Utility Technology (NSDQ: FSLR) Mid-point of 2021 sales guidance is $2.99 bil with $850 mil CAPEX. Sells PlantPredict solar energy modeling tool to solar digital solutions startup Terabase Energy for undisclosed terms. Company starts building a third Ohio manufacturing facility with 3.3 gigawatt production capability, will scale up potential regional output to 6 GW to become "largest fully vertically integrated solar manufacturing complex outside of China" according to management. Startup expected in first half of 2023 as company looks set to benefit from combination of tariff walls and robust demand for solar components, raw material costs remain a potential wildcard. Quality Grade C (no change). FirstEnergy Corp Buy<35 39.59 3.94 40.97 4.35 0.39 62.4 B 8/5/2021 9/1/2021 2.7 77.4 Regulated (NYSE: FE) Elec/Gas Fitch boosts credit outlook to stable from negative following company's settlement with US Department of Justice over Ohio bribery case, $230 mil penalty is material but won't upset CAPEX or dividend plans. Company still faces suits/investigations by the Securities and Exchange Commission, Federal Energy Regulatory Commission, Ohio Attorney General and several Ohio cities civil complaints. Could still face more regulatory pressure in Ohio but impact balanced by state's recovery, utility may benefit from end of rate decoupling in state. Regulatory relations in other states including Maryland, New Jersey, Pennsylvania and West Virginia still appear constructive with company likely to earn investment grade credit ratings in next 12 to 18 months. Plans to sell 20% stake in transmission system for $2.5 bil to a financial partner will help accelerate deleveraging at low cost to earnings. Quality Grade B (No change). Fortis Buy<45 46.13 3.46 20.11 1.71 0.51 75.7 A 8/18/2021 9/1/2021 6.4 55.1 Regulated (NYSE: FTS, TSX: Elec/Gas FTS) Upper single digit dividend increase is likely later this month. Extensive US power transmission network operated as ITC Holdings could be a major beneficiary of ramped up federal infrastructure spending, push to adopt more renewable energy. Shares look fully priced at 20.7 times expected next 12 months earnings. Quality Grade A (no change). Fortum Hold 28.6 4.75 N/A N/A 1.12 54.6 C 4/29/2021 5/7/2021 0.1 40.6 Int'l Electricity (OTC: FOJCF, FH: FORTUM) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Operating profit swings to loss in Q2 on changes in fair values of non-hedge accounted derivatives. Agrees to sell India solar portfolio (500 megawatts capacity), closes on sale of Baltic district heating business (EUR710 mil cash proceeds) and agrees to sell 50% stake in Stockholm Exergi for EUR2.9 bil. Has now realized EUR5.2 bil in asset sales in last 18 months to strengthen balance sheet (debt to EBITDA to drop under 2 times from 2.4 times at end of Q2) and focus operations. Has closed nearly 40% of coal power plants in less than one year as continues to transition generation fleet of former Uniper SE. First half comparable earnings per share increase by 13%. Quality Grade C (No Change). Frontier SELL 30.17 N/A N/A 16.17 N/A 0 F N/A N/A N/A 656.2 Communications Communications Corp (NSDQ: FYBR) Post-bankruptcy wireline communications company is basically in a race to cut costs, reduce debt, build fiber lines and attract broadband customers faster than it's losing consumers and businesses to much larger and better financed competitors. Takeover still looks like the end game but attraction of stock is negligible with no dividend and little hope of ever paying one again. Quality Grade F (No Change). FuelCell Energy SELL 6.12 N/A 139.06 -38.74 N/A 0 F N/A N/A N/A 41.8 Utility Technology (NSDQ: FCEL) Next earnings still expected Sept 10. Closes $10.2 mil sale-leaseback financing with tax equity for biofuel fuel cell project in California, 1.4 megawatt capacity. Closes on $15 mil tax equity financing for 7.4 MW US Navy submarine base fuel cell project as continues to advance technology, big question is always not running out of money for development efforts as company still lacks sustainable business model. Quality Grade F (No Change). Hannon Armstrong Buy<60 60 2.33 52.38 24.61 0.35 81.4 B 9/30/2021 10/8/2021 1.5 64.4 Renewable Infrastructure Energy BDC Capital (NYSE: HASI) Business model of lending and equity investing in renewable energy and efficiency projects should get a further lift from US infrastructure spending next year, but already has enough in place to make annual distributable earnings growth target is 7-10% through 2023, with dividends expected to grow 3-5%. Shares no longer at extreme valuation relative to earnings as they were earlier this year. Quality Grade B (No change). Hawaiian Electric Hold 43.06 3.16 29.85 0.04 0.34 64.8 B 8/18/2021 9/10/2021 2.9 52 Regulated Industries Elec/Gas (NYSE: HE) Management raises 2021 earnings per share guidance range to $2 to $2.20 per share. Q2 earnings per share advance 28.9%. Previously announced bank earnings are stronger on local economy's rebound. Utility operations will benefit going forward from recently enacted performance-based regulation in Hawaii, with management guiding to 4-5% annual unit profit growth on investment in resilience and electrification of transportation. Q2 utility results are flat as higher rate adjustment mechanism revenue and lower pension costs are offset by increased costs including for maintenance on generating facilities. Quality Grade B (no change). Huaneng Power Hold 22.98 4.25 51.29 62.57 1.11 63.6 C 7/1/2021 9/10/2021 22.6 61.8 Int'l Electricity International (NYSE: HNP, HK: 902) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Completes offering of $308.6 mil in notes maturing 2024 at low coupon interest rate of 2.99% and denominated in home Chinese renminbi currency, demonstrating ability to raise low cost cost capital. Had anticipated raising $232 mil. Proceeds to repay bank loans. Company continues to make timely filings with US Securities and Exchange Commission and so far avoid scrutiny of US regulators amid US/China tensions. Quality Grade C (No change). Hydro One Buy<26 25.38 3.35 26.65 0.82 0.27 33.8 A 9/7/2021 9/30/2021 5.1 57.6 Int'l Electricity (TSX: H, OTC: HRNNF) Q2 earnings per share higher by 2.6% on higher rates for distribution and transmission segments and lower pandemic-related expenses, offset partly by some higher costs. Company has filed rate and investment plan for 2023-27 with Ontario regulators for CAD12.5 bil in total CAPEX (67% toward infrastructure replacement), amicable outcome expected next year that would further ensure modest by stable earnings growth. Places CAD300 mil assets into service during quarter, first six months CAPEX is CAD1.08 bil, up 34.8% from a year ago. Allowed return on equity adjusts with changes in bond rates as earnings protection against inflationary pressures. Quality Grade A (No change) Iberdrola Buy<55 50.24 3.72 4.5 -0.43 1.2 61.5 A 7/8/2021 8/9/2021 8.3 51 Int'l Electricity (OTC: IBDRY, SM: IBE) US unit Avangrid appears to be nearing approvals for acquisition of PNM Resources as well as new offshore wind projects on Atlantic Coast, Vineyard project off Massachusetts is still on track for full commercial operations in 2023. Company submits bid to build new offshore wind facility in Germany to expand Baltic capacity to 1 gigawatt plus by 2026, brings 63 megawatt wind facility into service in Spain and ramps up solar investment. Hydropower unit in Spain threatened by low water levels on reservoir and government pressure. Shares appear underpriced at less than 18 times expected next 12 months earnings given leading position in global renewable energy development and predictable earnings. Quality Grade A (No change). IdaCorp Buy<100 107.09 2.65 25.31 9.4 0.71 59.2 A 8/4/2021 8/31/2021 6.4 43.8 Regulated (NYSE: IDA) Elec/Gas Mid to upper single digit percentage dividend increase on track for later this month. Mid-point of 2021 earnings guidance range is $4.80 per share. Shares appear fully priced at nearly 23 times expected next 12 months earnings, though company has takeover appeal with secure utility franchise and market capitalization of roughly $5.4 bil. Quality Grade A (No Change). Innergex Renewable Buy<25 16.32 3.53 -1.05 -3.27 0.18 164 B 9/28/2021 10/15/2021 2.4 81.8 Renewable Energy Energy (TSX: INE, OTC: INGXF) Management appears to be committed to current dividend level of 18 cents Canadian per quarter paid since April 2020 despite continued aggressive expansion strategy. Closes CAD201 mil bought deal equity financing and CAD50 mil concurrent private placement to buy Curtis Palmer 60 megawatt capacity run-of-river hydroelectric plant in New York state, from now privately-held Atlantic Power. Purchase is first 50-50 deal with financial partner Hydro-Quebec. Management expects "double digit accretion" in free cash flow per share and "greater than 10% reduction in payout ratio" in first full year of ownership. Close expected in Q4 following near certain approvals from Federal Energy Regulatory Commission and US regulators charged with reviewing purchases of US power assets by Canadian entities. Purchase is likely to be first of several in partnership with Hydro-Quebec. Quality Grade B (No change). Itron Buy<70 81.83 N/A 38.39 -13.94 N/A 0 C N/A N/A N/A 54.4 Utility Technology (NSDQ: ITRI) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Supply chain challenges appear likely to persist into next year due pandemic constraints and pressure on commodity prices. Shares are fully priced to the recently reduced mid-point of 2021 revenue guidance range ($2.1 bil) and earnings mid-point ($1.25 per share) and order backlog remains robust. Company remains leader in providing utility infrastructure and data services. Quality Grade C (No Change). JinkoSolar Holdings Buy<55 51.43 N/A 155.74 24.8 N/A 0 C N/A N/A N/A 68 Utility Technology (NYSE: JKS) Company is named in petition by anomymous group of US solar manufacturers to investigate photovoltaics supply chains on suspicion of circumventing US tariffs against Chinese products, potential impact unknown as Biden Administration has largely adopted Trump Administration trade policies though US Solar Industries Association says "disruption to the US solar market could be severe." Company appears to be coping with pressures thanks to efficiency advances for products, new polysilicon supply deals outside of China (most recently with German company Wacker Chemie AG), supply deal with NextEra Energy in the US and still solid business growth elsewhere in the world. NextEra defends relationship with US government petition to deny requests for more tariffs and to reveal names of US solar manufacturers requesting them. Stock looks cheap at 16.7 times expected next 12 months earnings given strong global position in growing market. Chief risk is protectionist US government actions. Quality Grade C (no change). Just Energy SELL 0.96 N/A -89.78 -39.82 N/A 0 F 8/14/2019 N/A N/A N/A Retail Electricity (NYSE: JE, TSX: JE) FYQ1 base EBITDA is -43% lower than year ago quarter, base gross margin is down -27% due to reduced customer base (commercial users -10%, consumers -11%) from a year ago. "Unlevered" free cash flow is reduced by -65%. Management says customer losses are primarily due to "strategy to increase the onboarding of high quality customers and regulatory restrictions in Ontario, New York and California," downplays losses due to competition from better financed, larger rivals that are more likely and potentially life-threatening reason long- term. Company does not hold earnings call in bankruptcy. Survival likely depends on favorable outcomes in ongoing litigation. Quality Grade F (No Change). Kayne Anderson Buy<9 8.06 8.68 89.01 -2.74 0.18 139 C 7/2/2021 7/13/2021 -29.7 N/A Closed-End Fund Energy Total Return (NYSE: KYN) Closed-end fund holding high quality North American midstream energy companies including several major MLPs. Largest holding as of August 31 was MPLX LP (13.4%) followed by Enterprise Products Partners (11.4%), both slightly higher percentages than a month ago. Top 10 holdings are 68.4% of total portfolio, coupled with high amount of leverage (32.12%) and large discount (11.2%) to net asset value gives fund strong leverage to improving energy price cycle going forward in addition to high yield. Quality Grade C (no change). Kinder Morgan Buy<22 16.34 6.61 29.78 -11.64 0.27 60 A 7/30/2021 8/16/2021 17.9 51.8 Energy Transport (NYSE: KMI) Completes acquisition of renewable natural gas company Kinetrex Energy for $310 mil as longer-term move. Midstream facilities appear to avoid major damages from Hurricane Ida though see some outages and curtailments. Company does not appear to be at substantial risk for fire at Arizona natural gas pipeline that killed two people, though investigation is still underway. Company secures new $3.5 bil, 5-year credit agreement on favorable terms, can be upsized if "certain conditions" are met, will potentially facilitate future M&A with utility-owned natural gas pipelines a target stated by management. Shares continue to trade at heavily discounted price for dominant midstream company. Quality Grade A (no change). Korea Electric Buy<12 10.32 3.91 24.85 -11.64 0.54 39.2 B 12/30/2020 4/28/2021 14.6 51.3 Int'l Electricity Power Corp (NYSE: KEP, KS: 015760) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Power company reports 3.4% boost in revenue for Q2, operating loss versus gain last year on spike in fuel and purchased power costs not passed through into customer rates (as expected). Management also says company limited rate increases to help customers deal with fallout from pandemic, will not raise electricity prices now but also affirms future tariffs are likely to reflect higher fuel costs. Results highlight company's position between rock and hard place on fuel costs. Silver lining is share price reflects the risk and expansion of nuclear power and renewable energy output should reduce exposure to coal and natural gas costs in coming years. Quality Grade B (No Change). Landmark Hold 16.36 4.89 73.79 26.32 0.2 54.1 C 8/2/2021 8/13/2021 -18.2 57.5 Communications Infrastructure Partners LP (NSDQ: LMRK) Flood of shareholder investigations announced by specialty lawfirms, research analyst downgrades after company agrees to takeover offer from sponsor Landmark Dividend LLC, owned by Digital Colony. New offer is $16.50 per share in cash, up from initial bid of $13 per share and subsequent offer of $16.25 per share in cash from Melody. Board approval and Digital's 100% ownership of general partner and 13.2% of common units greatly increase odds of a successful close, though some major investors may still be opposed. Shareholder vote and close expected by end of year. Downside from deal failure is probably low-teens, though GP may cut distribution in attempt to try again at a lower price. Underlying business appears steady and in full recovery as management has continued deleveraging strategy and pandemic impact has subsided. Quality Grade C (no change). Lumen SELL 12.13 8.24 22.19 -16.05 0.25 56.8 D 8/27/2021 9/10/2021 -22.6 75.1 Communications Technologies (NYSE: LUMN) Management doesn't expect to achieve goal of cutting debt to EBITDA to 2.75 to 3.25 times range "for another few years" despite expected $10.2 bil proceeds from assets sales, as will spend on fiber broadband to retain customers. Current outlays of roughly $1.1 bil for common stock dividends would absorb virtually all free cash flow going forward, will need cut of 50- 60% to restore current payout ratio range. Management likely to have more details on post-asset sale dividends with Q3 results and guidance update in early November. Quality Grade D (No Change). Magellan Midstream Buy<55 49.89 8.24 46.03 -1.84 1.03 85.5 B 8/5/2021 8/13/2021 3.4 69.1 Energy Transport Partners LP (NYSE: MMP) Mid-point of 2021 distributable cash flow guidance is $1.07 bil and likely to be met given high levels of price hedging, as is 1.17 time distribution coverage and $350 mil of free cash flow after distributions paid. Management is likely to hold current level of distributions with share buybacks lifting per share DCF and reducing cash outlays for payout next couple years. Quality Grade B (no change). MDU Resources Buy<35 32.17 2.64 36.82 -4.22 0.21 41 B 9/8/2021 10/1/2021 2.5 43.6 Utility/Construction (NYSE: MDU) Mid-point of 2021 earnings guidance range is $2.075 per share based on conservative assumptions for construction and regulated utility operations. Management says it sees "multi-year opportunities" from US infrastructure legislation now nearing passage. Pipeline (North Bakken) and utility asset expansion is on track to enter service in Q4. Materials business reportedly seeing solid uptick in second half of 2021. Quality Grade B (No Change). MGE Energy Hold 81.09 1.91 28.53 7.98 0.39 56.9 A 8/31/2021 9/15/2021 4.7 37.8 Regulated (NSDQ: MGEE) Elec/Gas Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Raises dividend by 4.7% effective with payment this month, reflecting growth rate of recent years and in line with utility rate base expansion, is also 46th consecutive annual boost reflecting steadiness of company. Shares now expensive at 27 times expected next 12 months earnings though company remains a takeover target with market capitalization of less than $3 bil and logical acquirer WEC Energy Group nearby. Quality Grade A (No Change). Middlesex Water SELL 112.59 0.97 78.54 31.58 0.27 50 A 8/12/2021 9/1/2021 6.8 45.3 Regulated Water (NSDQ: MSEX) Mid-single digit dividend increase on tap next month. Company sells wastewater utility unit in Delaware to Artesian Water for $6.4 mil, retains water utility and related unregulated operations in state. Sale is at good price to a buyer who can run the assets with more scale efficiency, will further focus operations and provide funds for CAPEX. Needs approval of Delaware regulators, expected to come relatively swiftly enabling a close by the end of Q4. Shares are very expensive at 46.6 times expected next 12 months earnings after reaching new high and yield less than 1%. Quality Grade A (No Change). National Fuel Gas Buy<55 52.51 3.47 23.57 -1.21 0.46 45.1 B 6/29/2021 7/15/2021 2.3 57.6 Integrated NatGas (NYSE: NFG) Fiscal year 2021 (end Sept 30) earnings guidance range mid-point is $4.10 per share, FY2022 is $4.60. Results for this year ensured by price hedging of most remaining commodity price exposure. Summer quarter (FYQ4) is seasonally weak for regulated natural gas distribution utility operations, should be strong for pipelines and midstream as Appalachian gas volumes hit record with lack of competition from associated natural gas produced from shale. Shares look cheap at 11.7 times expected next 12 months earnings. Quality Grade B (No Change). National Grid Buy<65 65.05 6.95 23.35 0.2 2.28 106.4 B 6/3/2021 8/18/2021 3.5 61.1 Int'l Electricity (NYSE: NGG, LSE: NG) Next full semi-annual earnings November 18. UK Competition and Markets Authority will not review now-closed acquisition of PPL's former UK utility unit, company cleared to step up integration activity as of September 1. Company sells 7-year and 12-year "green bonds" at lower than expected cost. Operations in New York state likely to be under increased regulatory scrutiny on range of issues from storm response to climate change action under less settled regulatory and political environment but company has strength to hang in for the long haul. Quality Grade B (No change). New Jersey Hold 37.6 3.54 30.98 -13.24 0.33 63.3 A 9/17/2021 10/1/2021 6.9 58.4 Regulated Resources Corp Elec/Gas (NYSE: NJR) FY2021 (end Sept 30) earnings guidance range mid-point is $2.15 per share. Completion of Southern Reliability Link pipeline drives midstream results for rest of calendar year. Rate hike request of $163.9 mil in New Jersey presents some uncertainty. Decision of PennEast Pipeline project to suspend new land purchases is ominous sign for eventual development, potential writeoff of investment is a risk but should not threaten ability to pay dividends with other operations running well. Quality Grade A (No Change). NextEra Energy Buy<80 85.69 1.8 26.05 19 0.39 58.8 A 8/26/2021 9/15/2021 11.8 52 Regulated (NYSE: NEE) Elec/Gas Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Company appears to face few risks to beating 6-8% annual earnings per share growth target this year. Successful asset expansion continues with Minnesota regulators approving 109 megawatt wind farm, filing with local officials in Kansas to build 600 MW wind facility (approval expected by end of Q4), plans to build 250 MW solar facility in Arizona, installation of first battery modules for world's largest solar powered storage in Florida (75% complete), new four-year rate deal in Florida ($1.6 bil rate hikes and unification of rates throughout state). Now closed sale/drop down of 391 MW wind power portfolio in California and New Hampshire to NextEra Energy Partners affiliate is latest demonstration of company's success using yieldco model as source of low cost capital while keeping control of valuable assets. Shares priced at premium valuation of 34.6 times expected next 12 months earnings but are likely to remain at one due to leading position in renewable energy in US. Quality Grade A (No Change). NextEra Energy Buy<80 80.98 3.27 49.5 18.78 0.66 50.8 A 8/4/2021 8/13/2021 14.9 30.8 Renewable Partners LP Energy (NYSE: NEP) Yieldco affiliate of NextEra Energy has few challenges to meeting high end of 12-15% annual dividend growth target through 2024, or "upper end" of EBITDA ($1.44-$1.62 bil) and cash available for distribution ($600-$680 mil) guidance ranges for 2021. Close of purchase of 400 megawatt wind portfolio (see NextEra Energy comments) is latest proof of success of company's yieldco model. High valuation is only real headwind for share price now but shares likely to continue to trade at a premium because of leading market position. Quality Grade A (No Change). Nippon Telegraph & Buy<28 28.6 2.93 33.43 7.4 0.49 42 A 3/29/2021 7/2/2021 12.7 50.5 Intl Telecom Corp Communications (Tokyo: 9432, OTC: NTTYY) High single digit boost in semi-annual dividend for payment in December is likely later this month as company appears well on track to meet guidance for FY2022 (end June 30). Biggest challenge is holding/gaining wireless communications market share in Japan with 5G network rolling out but company appears to be holding its own so far and has deeper pockets than rivals to ensure it has the country's best in class network. Will likely rely on a combination of cost cutting, share buybacks with hefty levels of free cash flow, global operations to meet earnings targets next several years as 5G applications are rolled out for consumers and businesses. Shares fully price when ADRs trade over highest recommended entry point of 28. Quality Grade A (No Change). NiSource Buy<26 25.06 3.51 16.61 -0.83 0.22 65.7 A 10/28/2021 11/19/2021 4.6 62.6 Regulated (NYSE: NI) Elec/Gas MId-point of 2021 earnings guidance range is $1.34 per share. Management holds to target 10-12% annual rate base growth fueling 7-9% yearly earnings growth through 2024. Appears to be on track for mid-single digit dividend boost in January. Company appears to face few risks to meeting guidance with supportive regulation and most rate base investment returns locked under riders and other approved mechanisms. Company is takeover target at valuation of 17.6 times expected next 12 months earnings and market capitalization of less than $10 bil. Quality Grade A (No Change). Northland Power Inc Buy<35 33.94 2.8 27.38 1.95 0.1 90 B 8/30/2021 9/15/2021 1.2 79.3 Renewable (TSX: NPI, OTC: Energy NPIFF) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Company is likely to stick to monthly dividend rate of 10 cents Canadian per share with current 2021 free cash flow per share guidance now at "low end" of previously stated range of CAD1.30 to CAD1.50 per share, would make for payout ratio likely in neighborhood of 90% for company now in growth phase with multiple large development projects in offshore wind globally. Cash flow should get lift from close of acquisition of 435 megawatts of wind and 66 MW solar in Spain last month, funded by equity offering completed in April. Company is now a top 10 renewable energy provider in Spain. Quality Grade B (no change). Northwest Holdings Buy<55 51 3.76 6.09 -4.29 0.48 76.8 B 7/29/2021 8/13/2021 0.5 60.2 Regulated (NYSE: NWN) Elec/Gas Mid-point of 2021 earnings guidance range is $2.50 per share. Low single digit dividend increase looks likely for next month. Stock sees some buying by executives in wake of rate settlement filed with Washington regulators. Oregon service territory continues to be healthy, though natural gas distribution franchises face some risk from potential bans on new hookups being considered by some municipalities in Northwest US, as they are in California. Conservative financial and operating policies should protect dividend and stock appears fairly priced at 19.5 times expected next 12 months earnings. Quality Grade B (No Change). NorthWestern Corp Buy<65 64.8 3.83 30.39 2.81 0.62 70.9 B 9/14/2021 9/30/2021 4.3 53.9 Regulated (NSDQ: NWE) Elec/Gas Earnings per share guidance range mid-point for 2021 is $3.505 per share, with long-term growth target of 3-6% a year. Partner Otter Tail Power (35% owner) in coal-fired Coyote Generating Station makes integrated resource filing for regulators in Minnesota, North Dakota and South Dakota that operating the plans "is no longer in the best interest" of customers and requests authorization to withdraw from ownership in 2028. Company (10% owner) says plant is "important energy resource" for its customers and will address issue in late 2022 resource filing. May seek regulatory support for replacement power funding in rate base given small ownership stake and because coal plants nationwide remain under pressure for closure. Shares fairly priced at 18 times expected next 12 months earnings. Quality Grade B (No Change). NRG Energy Hold 45.43 2.86 40.83 35.07 0.33 18.3 C 7/30/2021 8/16/2021 119.8 84.3 Retail Electricity (NYSE: NRG) Free cash flow guidance mid-point is $1.54 bil for 2021, with EBITDA of $2.5 bil. Company continues deleveraging efforts with redemption of $1.4 bil of high cost debt due 2026-27, including bonds with coupon rates of 7.25% and 6.625%, earlier in the month issued $1.1 bil notes with 10.5 year maturity and coupon yield of just 3.875% demonstrating ability to access low cost green bond market. Earnings likely to get lift from higher Texas wholesale power prices in forward market, cost of winterizing and new trading rules does not appear prohibitive at this time. Retirement/sale of coal fired power plants appears on track. Quality Grade C (No change). NuStar Energy LP Buy<20 16.74 9.56 48.32 -7.24 0.4 45.1 C 8/5/2021 8/12/2021 -22.1 66.8 Energy Transport (NYSE: NS) Low share price and high yield appear to reflect too much dividend risk as successful deleveraging of balance sheet continues and Permian Basin-based midstream system sees solid volumes. St. James, Louisiana oil terminal sustains only "superficial damage" from Hurricane Ida according to management and should be back on line shortly after electricity is available to run it. Quality Grade C (No Change). OGE Energy Corp Hold 35.67 4.51 18.8 5.14 0.4 90.5 B 7/9/2021 7/30/2021 6.6 50 Regulated (NYSE: OGE) Elec/Gas Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Management guiding to "lower half" of 2021 earnings guidance range, though still 5% longer-term earnings growth rate. Low single digit dividend increase is likely later this month. Potential delay in closing sale of 50% general partner and 25.46% limited partner interest in Enable Midstream due to Federal Trade Commission anti-trust review may push back expected deleveraging and emergence as pure play regulated utility, but may favorably impact profitability in second half 2021 as Enable cash flow turns up with stronger natural gas prices. Securitization of utility's higher natural gas purchase costs from Winter Storm Uri will keep company whole financially while providing upside for rate base investment by limiting rate shock from cost pass through. Possible FTC rejection of sale of Enable stake to Energy Transfer would require finding another buyer, though higher gas prices should make that easier and limit downside to stock. Quality Grade B (no change). Oi Hold 0.31 N/A -36.25 -23.5 0 0 D 7/20/2018 7/30/2018 N/A 79.1 Int'l (Sao Paulo: OIBR4, Communications OTC: OIBRQ) Brazilian government says it's "concerned" about sale of company's wireless operations to units of America Movil, Telecom Italia and Telefonica SA, refers case to country's chief regulator. Delayed close would also push back company's financial recovery plans. Swings to positive earnings in Q2 despite -3.4% drop in revenue, -5.5% lower EBITDA. Net debt increased by 28% as company raises CAPEX 7.5% with fiber broadband focus, now has 3 mil fiber customers representing 50% of all residential revenue. Quality Grade D (No Change). ONE Gas Buy<78 72.03 3.22 1.48 -3.47 0.58 61.1 A 8/12/2021 9/1/2021 8.2 47.7 Regulated (NYSE: OGS) Elec/Gas Mid-point of 2021 earnings per share guidance range is $3.80. Securitization of extraordinary natural gas purchase costs in Kansas, Oklahoma and Texas resulting from Winter Storm Uri is underway, will keep utility whole financially and keeps door open for rate base expansion to keep earnings growth on track. Increased ability to take in renewable natural gas supplies will help reduce exposure to future winter price spikes. Shares reasonably priced at 18.5 times expected next 12 months earnings. Quality Grade A (No Change). ONEOK Buy<50 53.17 7.03 117.64 0.33 0.94 73 C 7/30/2021 8/16/2021 6.1 70.4 Energy Transport (NYSE: OKE) Management is likely to hold quarterly dividend at 93.5 cents per share well into 2022 at least, as rising free cash flow is prioritized for strengthening balance sheet. Ethane extraction remains a key growth driver for midstream assets, company system can absorb a big volume rebound without significant new investment as ramped up CAPEX of recent years has now wound down. Cost of debt capital has declined sharply over past year with 30-year bonds now yielding 4.2% to maturity and investment grade rating backed by "stable" outlook at Fitch, Moody's and S&P. Quality Grade C (No change). Orange Buy<16 11.36 8.49 13.51 -7.41 0.6 34.9 B 6/11/2021 7/2/2021 11.8 53.5 Intl (NYSE: ORAN, FP: Communications ORA) Morocco anti-trust authority approves company's purchase of roughly 37% stake in Casablanca-based health technology company DabaDoc in partnership with Axa Assurance, latest move to expand capability in North African markets where has seen robust growth in recent years. Meeting deleveraging targets is key to maintaining generous semi-annual dividend policy. Debt to EBITDA has dropped to 1.99 times, with management expecting more progress going forward based on expected free cash flow generation of EUR3.5 to EUR4 bil by 2023. Quality Grade B (no change). Origin Energy Hold 3 2.68 N/A N/A 0.05 31 B 9/7/2021 10/18/2021 N/A 34.8 Int'l Electricity, (ASX: ORG, OTC: LNG OGFGY) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Cuts semi-annual dividend for payment next month by -25% from year ago level. Posts -AUD$2.29 bil loss for FY2021 (end June 30) with AUD2.25 bil non-cash charges including impairment of generation assets, goodwill writeoff. Solid performance of Australia Pacific LNG project and recovery in oil and gas prices provide lift. Underlying EBITDA is lower by -32% and in range with forecast provided in April, as were results in power generation and at LNG operations individually. Management sets guidance for FY2022 EBITDA excluding items of AUD1.85 to AUD2.15 bil, CAPEX expected to be AUD370 to AUD410 mil, says it achieved cost savings target for FY2021 of AUD110 mil off of AUD2018 baseline and adds retail natural gas customers in competitive market. Quality Grade B (no change). Ormat Technologies Buy<80 71.82 0.67 20.93 4.85 0.12 26.3 C N/A N/A -2.7 43.2 Renewable (NYSE: ORA) Energy Mid-single digit dividend increase still appears likely for November, as underlying asset and recurring revenue growth continues in line with management guidance. Wins project to supply products to San Jacinto geothermal project in Nicaragua, earnings from division likely to improve going forward but will remain lumpy. Company is likely to continue prioritizing recurring revenue sources, such as contracted geothermal power facilities and energy storage arrangements with major utilities, especially in California. World's largest geothermal independent generator deserves some premium multiple. Quality Grade C (No Change). Orsted A/S Buy<60 52.56 0.77 17.39 10.23 0.62 32 C 3/2/2021 3/18/2021 8.7 30.1 Utility Technology (Denmark: ORSTED, OTC: DNNGY) Sunrise offshore wind project in New York (924 megawatts capacity) developed in partnership with EverSource is now under environmental review from US Bureau of Ocean Energy Management. Partners' proposed 130 MW wind facility off Rhode Island coast may win final approval for construction this month after receiving favorable Environmental Impact Statement from BOEM, also plan offshore wind substation off Texas (132 MW). Wins power sales contract with Microsoft at Texas facility to come on line in Q2 2022. Company maintains 2021 financial guidance despite warning of lower wind speeds across fleet, though says EBITDA to be at "low end" of previous forecast range. First half profit up 186% from last year on "farm down" of Dutch offshore wind farm as wind conditions crimp output at existing facilities, growing scale and geographic diversification should reduce quarterly lumpiness in results going forward. Quality Grade C (no change). Otter Tail Corp Hold 55.26 2.82 49.66 14.27 0.39 43.6 B 8/12/2021 9/10/2021 5.1 49.8 Regulated (NSDQ: OTTR) Elec/Gas Mid-point of 2021 earnings per share guidance is $3.575. Files 15-year resource plan for Minnesota, North Dakota and South Dakota, includes exiting company's 35% ownership stake in Coyote Station coal plant in 2028 (see Northwestern Corp comments), adding 150 megawatts of new solar generation and corresponding opportunity to grow rate base and earnings. Results in second half of year should continue to get lift from plastics unit. But stock valuation of 17 times expected next 12 months earnings is full given cyclical exposure of manufacturing unit. Quality Grade B (No change). Partner Buy<4.50 4.35 N/A 13.58 -4.4 0.26 0 C 8/27/2012 9/18/2012 N/A 57.1 Intl Communications Communications (NSDQ: PTNR, IT: PTNR) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Company makes offer to buy Israeli wireless company Marathon out of bankruptcy. Q2 revenue advances 9% with services up 5% and equipment by 21%. EBITDA increased 6% as 10% boost in wireless customers (now 2.97 mil) more than offsets -6% reduction in revenue per customer. Boosts fiber optics customer base by 71.3% over past year, now connects 571,000 homes. Company also adds television users over past year. Appears to be competing better against rivals despite tough competition and sometimes regulation. Quarterly wireless churn rate of 7.2% in Q2 is high by international standards but in line for Israel. Average monthly revenue per user is flat sequentially with Q1 indicating increased stability of business. Quality Grade to C from D on improved stability of business metrics, elevated debt maturities still make company suitable for more aggressive investors only. Pembina Pipeline Buy<38 31.12 6.43 36.44 -0.67 0.21 59.4 A 8/24/2021 9/15/2021 5.1 43.7 Energy Transport Corp (NYSE: PBA, TSX: PPL) Monthly dividend likely to stay at 21 Canadian cents for time being now that Inter Pipeline will not become part of company, but payout is well supported at mid-point of 2021 EBITDA guidance range of CAD3.35 bil. System expansion projects remain on time and budget. Partnership with three First Nations groups in Canada is apparently considering a bid for Trans Mountain oil pipeline to the Pacific as Canadian government continues to push ahead on development of expansion. Shares low priced at less than 16 times expected next 12 months earnings as energy price cycle turns up, Canadian oil/gas takeaway capacity grows and increases midstream opportunities and cash flows. Quality Grade A (No Change). PG&E Corp Buy<14 9.15 N/A -0.44 -11.85 N/A 0 C 12/28/2017 N/A N/A 66.7 Regulated (NYSE: PCG) Elec/Gas Potential liability to damage costs from Dixie Fire is major uncertainty this year. Judge overseeing operations increases pressure and forced outages to prevent new fires attract scrutiny this summer. California regulators approve plan to sell San Francisco headquarters for $800 mil gain, will pass through half of that into rates. Also plans to consolidate East Bay office locations into a single headquarters to cut cost on a permanent basis, part of CEO Poppe's systematic attempt to improve efficiency, focus on safety. Company has proposed $20 bil plan to bury power lines in areas most threatened by wildfires, could generate 4% annual rate base growth for next 10 years on its own, cost may be challenged by customer affordability concerns. Stock suitable for aggressive, patient investors only though long-term recovery still highly likely as alternative would be an extremely costly state of California takeover few want. Quality Grade C (No Change). Pinnacle West Hold 77.18 4.3 11.03 -10.44 0.83 70.9 A 7/30/2021 9/1/2021 6.1 54.6 Regulated Capital Corp Elec/Gas (NYSE: PNW) Low-single digit dividend increase still appears likely next month, despite Arizona administrative law judge recommendation in rate case for low 9.16% return on equity, $3.6 mil base rate boost offset by non-fuel $29 mil rate cut. Future $90 mil earnings hit possible if regulators adopt the full recommendation but compromise ruling later this year is still most likely outcome, with final numbers between ALJ's and company's request for 10% ROE and $169 mil rate increase. Sells $400 mil 10-year notes at still modest coupon interest rate of 2.2% following ALJ recommendation, current price as well as share price appear to reflect rate case compromise. Quality Grade A (No Change). Plains All American Buy<15 9.64 7.47 47.4 -13.39 0.18 38.3 C 7/29/2021 8/13/2021 -15.7 52.1 Energy Transport Pipeline LP (NSDQ: PAA) Guidance distribution coverage for 2021 is robust 2.61 times, forecast free cash flow is $1.35 bil, or $450 mil excluding proceeds from asset sales. Management is likely to hold quarterly dividend at 18 cents per unit until there's a sustained volume recovery on systems in favor of balance sheet strengthening and possibly share buybacks. Partnership now requires public vote for all directors as advances governance. Renews and extends $2.7 bil in credit facilities to 2024 and 2026 on favorable terms. Quality Grade C (no change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date PLDT Buy<30] 29.22 4.2 9.67 8.15 0.84 69.3 C 8/17/2021 9/20/2021 12.5 67 Intl (NYSE: PHI, PM: Communications TEL) Still on track to meet 2021 financial guidance. Semi-annual dividend for payment this month is increased by 10.5% from year earlier disbursement. Management says company is on track to triple the communications/data capacity of its domestic network by end of year from 2020 levelson expansion of fiber broadband, 4G wireless and 5G service rollout. E-commerce solutions continue to find high adoption rates. Company will invest $80 mil undersea communications systems. Potential sale of wireless towers will provide big cash infusion if company elects to. Quality Grade C (no change). PNM Resources SELL 49.64 2.64 18.48 2.06 0.33 56.5 A 8/5/2021 8/13/2021 7.5 62 Regulated (NYSE: PNM) Elec/Gas Stock is following prospects for closing acquisition by Avangrid for $50.30 per share in cash. Management says all 24 intervenors in case now either support or don't oppose merger after acquirer makes additional concessions at hearings last month. Hearing examiner will now make recommendation followed by full commission vote in Q4. Approval still not a given but appears extremely likely to close by end of year. Downside from now very unlikely deal failure is high 30s/low 40s share price, upside to successful close including one last dividend is roughly 2%, not including another payout is 1.3%. Quality Grade A (no change). Portland General Hold 51.76 3.32 40.14 6.71 0.43 62 B 9/24/2021 10/15/2021 6.1 56.4 Regulated Electric Elec/Gas (NYSE: POR) Mid-point of 2021 earnings per share guidance range is $2.775. Pending Oregon rate case to recover $1 bil of system investment carries some uncertainty though recent outcomes have been generally amicable. Company appears to be avoiding worst impacts of regional wildfires and unprecedented hot summer weather in service territory this year. Support for Oregon ban on new natural gas-fired power plants highlights alignment of utility's strategic priorities with state energy policy, a long-term positive for investors. Quality Grade B (no change). PPL Corp Buy<32 30.09 5.52 12.76 5.28 0.42 NMF C 9/9/2021 10/1/2021 1 65 Regulated (NYSE: PPL) Elec/Gas UK regulators won't challenge National Grid purchase of company's UK utility operations. Utility says it's on track to cut CO2 emissions by 70% from 2010 levels by 2035, portending exit from coal. Regulator support appears likely despite territory focus on coal country states Kentucky and Pennsylvania, Rhode Island will require if officials approve company acquisition of National Grid unit there later this year as expected. Federal Energy Regulatory Commission approves deal with industrial and municipal customers to cut base return on equity from 11.18% to 9.9% for transmission service, should still allow healthy return on investment. Share price still appears to reflect dividend cut of 30-40%, management has yet to clarify but may with release of Q3 results and guidance update in early November. Quality Grade C (no change). Public Service Buy<70 64.14 3.18 26.5 5.56 0.51 57.1 A 9/7/2021 9/30/2021 4.4 52.3 Regulated Enterprise Group Elec/Gas (NYSE: PEG) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Hurricane Ida damage restoration performance for Long Island system under management is certain to attract performance from New York regulators given contentious environment, but company appears so far to have avoided the worst as only 1,195 of 1.1 mil system customers still lacked power two days after storm hit. Moody's cuts credit rating outlook to negative from stable after company clarifies plans to sell all non-nuclear generation (6.8 gigawatts capacity) for $1.92 bil for private capital firm ArcLight, cites concentration in baseload power source (nuclear) offsetting revenue protection from zero emission credits, robust utility rate base spending plans, cost of offshore wind facilities but all three are likely to benefit shareholders. Company will take non-cash charge of $2.15 to $2.25 bil for sale. Management raises mid-point of 2021 earnings per share guidance to $3.575 per share from previous $3.475 following sale announcement, cites interest expense savings. F five-year CAPEX plan of $14-$16 bil on utility rate base unchanged. Quality Grade to A from B on exit from non-nuclear generation and resulting sharply reduced merchant power risk as well as lower debt. Valuation likely to rise from 19.1 times expected next 12 months earnings following non-nuclear generation sale. Quebecor Hold 25.32 3.39 4.85 -6.87 0.28 38.4 B 8/19/2021 9/14/2021 85.4 83.4 Intl (OTC: QBCRF, TSX: Communications QBR/B) Bids of CAD830 mil in Canada's wireless spectrum auction this summer are challenged by arch rival BCE in filing with Canadian regulators on grounds that 5G spectrum was allocated for small players, not national ones. Outcome is uncertain but company is likely to contineu to be aggressive with acquisitions, including Shaw Communications' Freedom Mobile unit if sale is required to close Shaw merger with Rogers Communications. Ability to expand outside of Francophone Canada is still not proven but company has financial resources. Quality Grade A (No change). Reaves Utility Buy<35 36.33 6.28 23.33 5.43 0.19 234.5 B 9/16/2021 9/30/2021 3.4 N/A Closed-End Fund Income (NYSE: UTG) Latest distribution boost for closed end fund holding portfolio of high quality utility stocks and telecoms appears well covered by investment returns. Distribution for fiscal year to date is 30.02% net investment income, 14.83% realized short-term capital gains and 55.15% net long-term capital gains. Premium to net asset value is not significant factor for returns at this time at less than 1%. Largest holding at end of Q2 was BCE Inc at slightly less than 4%, followed by NextEra Energy with communications companies four of five biggest positions. Also has 3.14% position in data center REIT Equinix Inc. Quality Grade B (No Change). RGC Resources SELL 24.7 3 6.27 7.33 0.19 62.2 C 7/14/2021 8/1/2021 6.2 58.2 Regulated (NSDQ: RGCO) Elec/Gas Small natural gas distribution utility still faces enormous potential risk from 1% ownership stake in Mountain Valley Pipeline. Project faces critical court decision later this year on ability to cross federal land. Lead developer Equitrans Midstream (NYSE: ETRN) still says 303-mile system will be operational by summer 2022 but further delays will push up costs even more, even as company absorbs another $65 mil from latest delay. Utility is no longer booking costs to earnings as allowance for funds using during construction and will add to expenses going forward. Total investment in Mountain Valley and related Southgate pipeline projects now booked as assets is $62.5 mil plus with $1.85 mil in current liabilities/capital contributions payable. Writeoff would be 65% of total shareholders' equity. Customers also seeing big pass through of last winter's natural gas purchased costs, a test for regulatory relations. Quality Grade C (no change). Rogers Buy<50 50.69 3.15 23.33 -2.21 0.5 64 B 9/8/2021 10/1/2021 1.5 68.9 Intl Communications Communications (NYSE: RCI, TSX: RCI/B) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Management current guidance for closing the proposed Shaw Communications merger is still "First half of 2022." Alberta regulators and shareholders have approved deal. Company may have strengthened hand with Canadian federal regulators by bidding some CAD3.5 bil for wireless spectrum, as country's anti-trust agency rounds up information in the case with court orders. Market perceives odds of a successful close rising with Shaw now trading at a price within 10% of Rogers' offer. Quality Grade B (No change). Royal Dutch Shell Buy<40 40.15 4.06 44.51 1.17 0.48 91.6 B 8/12/2021 9/20/2021 -26.5 40.5 Super Major (NYSE: RDS/A, LSE: Oil/Gas RDSA) Cost reduction is key priority across enterprise as company focuses debt reduction, natural gas development (LNG) and renewable energy investment after restoring much of former quarterly dividend. Company says it will install 50,000 electric vehicle chargers in UK by 2024, announces plans for 1.4 gigawatt capacity South Korea floating offshore wind project. System in US Gulf of Mexico sustains some damage but appears to mostly weather the storm, biggest impact on Q3 results will be from shut-in of output following storm. Loses court battle over Nigerian offshore drilling license but has plenty of places to invest, including renewable energy in same country. Will pay $111 mil to settle Niger Delta oil spills case. Quality Grade B (No Change). RWE Buy<42 39.55 1.85 8.95 4.93 1.02 74.3 A 4/29/2021 5/13/2021 -17.4 22.7 Intl Electricity (OTC: RWEOY, GR: RWE) Confirms boost in annual dividendfor 2022 to 90 Euro cents, 5.9% higher than this year. CEO says company is a "growth" stock, not a "dividend" stock, signalling focus on ramped up renewable energy CAPEX as giant asset swap with E.On finally closes. Completes 125 megawatt onshore wind facility in New York, signs memo of understanding with Ukrainian company to explore opportunities in green hydrogen, separates onshore from offshore renewables business functionally for better focus. Management raises 2021 outlook for EBITDA to guidance range mid-point of EUR3.2 bil from previous EUR2.85 bil, earnings range to EUR1.225 bil from EUR925 mil. Trading business results are key (EUR525 mil in first half) to results as well as guidance increase. Asset expansion is on track, with 3.9 gigawatts of capacity under construction for startup in 2022 to reach 13 GW target. Quality Grade B (No Change). Sempra Energy Buy<140 133.41 3.3 14.13 -1.4 1.1 56.4 A 9/23/2021 10/15/2021 7.7 49.7 Regulated (NYSE: SRE) Elec/Gas Mid-point of 2021 earnings guidance range is $8.05 per share, with $8.40 for 2022. Venture with Hyzon Motors will power utility vehicle with hydrogen-powered fuel cell, part of plan to run all vehicles on either electricity or fuel cell vehicles by 2035 for fully zero emissions fleet by 2035. Gas mapping now used for detecting and reducing methane emissions in utility distribution system and at midstream assets. Wrapping up purchase of remaining shares of IEnova unit in Mexico with board approving offer, operations fully merging into infrastructure unit. Quality Grade A (No change). Severn Trent Hold 40.07 3.95 32.92 11.82 0.84 89.6 A 5/28/2021 7/26/2021 7.3 85.3 Regulated Water (OTC: STRNY, LN: SVT) Next full earnings on November 23. Latest guidance is financial performance is in line with management expectations at beginning of fiscal year (April 1, 2021). Results are generally very predictable because they're based on multi-year rate, efficiency and investment plan agreed to with regulators in advance, and UK officials have kept utilities whole in face of pandemic related impacts so far. Shares remain fully priced at nearly 23 times expected next 12 months earnings. Quality Grade A (No change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Shaw Buy<30 29.75 3.18 67.52 0.21 0.1 95.6 B 9/14/2021 9/29/2021 0.2 49.1 Intl Communications Communications (NYSE: SJR, TSX: SJR/B) Share price less than 10% below takeover offer from Rogers Communications of CAD40.50 per share in cash, reflecting greater investor confidence deal can eventually close on essentially the same terms. Next full results are expected October 29 as company is on different financial calendar than other communications companies including in Canada. Sale of Freedom Mobile unit may be a condition of closing merger with Rogers next year. Quality Grade B (No Change). Shenandoah Buy<32 30.44 1.12 -6.89 -2.52 18.75 26.3 B 8/3/2021 8/2/2021 318.7 55.8 Communications Telecommunications (NSDQ: SHEN) Price now fully reflects payment of special cash dividend of $18.75 per share on August 2. Management has not yet set a post-wireless sale dividend though has reaffirmed 2021 financial guidance for remaining rural-focused wireline and broadband company. Company continues rapid expansion of fiber optic network for use of homes and businesses. Is likely takeover target now more than ever with market capitalization of only around $1.5 bil. Will likely set new dividend rate in late October. Quality Grade B (no change). Singapore Buy<18 17.83 1.75 11.7 -0.34 0.18 44.4 C 8/3/2021 8/25/2021 -29.3 32.7 Intl Telecommunications Communications (OTC: SGAPY, SP: ST) Next full numbers are still expected out November 11. Reaches deal to sell wireless towers held by 35% owned Telkomsel unit in Indonesia for about SGD580 mil as continues to streamline portfolio and focus on 5G deployment, with Singapore the top target. Bharti affiliate (31.7% owned) in India issues equity rights to be used for CAPEX (5G rollout in particular) and debt repayment, credit positive for unit and neutral for parent says Moody's. FYQ1 (end Sept 30) net profit swings positive from a loss a year as operating revenue rebounds by 7.7%, key drivers include firming Australian dollar versus Singapore dollar (up 11%) and especially improved business environment, 1.3% higher Singapore revenue, Technology Services up 5.7%. EBITDA increased 12%. Management says sales from "growth engines" (digital, cloud and cyber security services) grew by 31% and are now 45% of operating revenue, up from 36% a year ago as business continues to transform. Quality Grade C (No change). SJW Corp Hold 70 1.94 14.46 10.76 0.34 69.7 A 8/6/2021 9/1/2021 3 62.7 Regulated Water (NYSE: SJW) Mid-point of 2021 earnings per share guidance range is $1.95. Still on track for mid-single digit dividend increase next year as rate base growth continues at now nationally diversified regulated water utility operations. Shares fully priced at 35.8 times expected next 12 months earnings and yield of less than 2%. Quality Grade A (no change). SK Telecom Buy<32 29.28 1.22 37.65 -9.08 0.24 48 B 6/29/2021 8/17/2021 3.6 34 Intl (NYSE: SKM, KS: Communications 017670) Buys 20% stake in Korean TV program provider in US as attempts to add content, expand range of applications and services. Company also looks to boost presence in 5G mobile edge computing. Q2 operating income is 10.8% higher on 4.7% revenue gain, management says all operations performing well. 5G adoption is a key driver, with company reaching 7.7 mil subscribers (30% plus of total users). Continued customer growth and introduction of new applications promise further gains. SK Broadband unit has largest user adds in industry in Q2, now has 8.81 mil customers. Spinoff of non-telecom operations is set for November as SK Square, following shareholder vote on October 12. Quality Grade B (No Change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date South Jersey Buy<24 24.7 4.9 17.42 -8.9 0.3 75.6 A 9/9/2021 10/4/2021 2.6 67.8 Regulated Industries Elec/Gas (NYSE: SJI) Mid-point of 2021 economic earnings guidance is $1.60 per share, with 5-8% annual earnings growth target fueled by yearly rate base growth of 10% on $3.5 bil CAPEX through 2025. Suspension of land purchases by PennEast Pipeline (20% interest) could be bad sign for project's eventual completion but earnings growth at regulated utility and related unregulated operations is more than enough to offset any remaining financial impact in event of a writeoff of remaining investment. Company has also already taken writeoff of $87.4 mil of investment to account for delays and challenges to project. Quality Grade A (no change). Southern Company Buy<65 66.27 3.98 32 4.02 0.66 78.6 A 8/13/2021 9/7/2021 3.3 61.1 Regulated (NYSE: SO) Elec/Gas Fitch affirms credit rating with stable outlook, cites "moderating" Vogtle nuclear plant risk with recent completion of hot functional testing. S&P affirms rating with negative outlook. Service territory appears relatively resilient so far during hurricane season and company not expecting further delays because of it in Vogtle construction. Company is ramping up electric vehicle infrastructure particularly in Georgia. Management still guiding to annual earnings per share growth rate of 5-7%, with mid-point of 2021 guidance at $3.30 per share. Quality Grade A (No Change). Southwest Gas Corp Buy<75 71.61 3.32 16.29 8.61 0.6 57.5 B 8/13/2021 9/1/2021 4.7 51.1 Regulated (NYSE: SWX) Elec/Gas Midpoint of 2021 earnings guidance range is $4.10 per share. Closes acquisition of Riggs Distler & Company, expanding Centuri utility construction business into Northeast and Mid- Atlantic states. Issues $300 mil in 30-year bonds at better than expected coupon interest rate of 3.18%. Centuri unit issues $1.145 bil in debt at low rate of 3%. S&P cuts rating to BBB from A- with stable outlook, reflecting larger unregulated operations after Riggs acquisition. Company is still well in investment grade territory, though Moody's (Baa2) and Fitch (BBB+) still rate outlook negative. Deal has not increased cost of capital meaningfully to date and provides meaningful incremental growth, especially if infrastructure legislation gets through US Congress. Quality Grade B (No Change). Spark New Zealand Hold 17.3 4.01 13.55 2.73 0.08 120.1 B 9/15/2021 10/12/2021 4.1 55 Intl (NZ: SPK, OTC: Communications SPKKY) Company holds semi-annual dividend for payment in October level with rate paid last year. FY2021 (end June 30) underlying earnings advance 1% and management says company "delivers to guidance" despite disruption from pandemic. Top line revenue is lower by -0.8% due to closed borders and loss of roaming revenue. Growth rate of broadband also slows but company sees "strong underlying revenue performance within our established markets of mobile and cloud security and service management." Wireless revenue up 4.3% excluding roaming impact, as company ramps up 5G rollout and remains dominant service provider in New Zealand. Quality Grade B (No Change). Spire Corp Buy<72 66.17 3.93 19.74 -7.39 0.65 59.1 A 9/9/2021 10/4/2021 5.2 55.4 Regulated (NYSE: SR) Elec/Gas Mid-point of fiscal 2021 (end Sept 30) earnings guidance range is still $4.40 per share, excluding non-recurring items. Mid-single digit dividend increase looks set for November though timing may depend on pending regulatory approval of Missouri rate settlement. Federal Energy Regulatory Commission is still considering company's emergency request to continue operating Spire STL Pipeline as source of natural gas for distribution system. District of Columbia Court of Appeals had vacated earlier permit from FERC in response to Environmental Defense Fund lawsuit. Management has also asked Court of Appeals for a rehearing. Missouri regulators have also joined request for FERC to reissue permit or at least allow pipeline to keep running this winter. Outcome of case is uncertain but stock price reflects risk at 16.5 times expected next 12 months earnings. Quality Grade A (No Change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Suburban Propane Buy<15 15.34 8.47 28.4 4.01 0.33 30.8 C 8/2/2021 8/10/2021 -20.1 78.6 Propane Partners LP Distribution (NYSE: SPH) Company remains a takeover target in fragmented propane fuels distribution business with market capitalization of less than $1 bil. Distribution in near term appears secure with no debt maturities before 2025 and added scale from acquisitions increasing ability of partnership to absorb both volatile wholesale propane costs and weather. Quality Grade C (No Change). Suez SELL>12 11.53 2.15 33.67 -2.3 0.38 46.4 B 7/6/2021 7/22/2021 N/A 65.3 Utility Technology (OTC: SZSAY, FP: SEV) Financial targets for 2021 likely to be beaten if company stays independent as business units gain momentum. Management also continues to affirm all-cash merger offer from Veolia Environnement SA is "on track" at EUR20.50 per Paris-traded share to close by end of year. Paris-listed share price trades 4.3% below the all-cash offer. US dollar value of deal is approximately $12.20 per ADR, based on current Euro/US dollar exchange rate, a -5.6% discount. Investors' best course is to hold. Quality Grade B (No Change). SunPower Corp Hold 21.83 N/A 96.84 -4.42 N/A 0 D N/A N/A N/A 63 Energy (NSDQ: SPWR) Technology California regulators continue to favor rooftop solar expansion with new mandates on high rises and motels. Company could face higher costs for components if US manufacturers succeed in raising tariffs further on imports. Low margins already threaten sustainability of business model long-term despite high popularity of systems. Quality Grade D (No Change). Sunrun Inc Hold 45.54 N/A -7.49 7.63 N/A 0 D N/A N/A N/A 41.9 Renewable (NSDQ: RUN) Energy New increase in tariffs on imported solar components and elements of them could further squeeze margins, even with California mandates for more solar deployment. Q2 results indicate rising revenues don't necessarily lead to profitability with operating expenses 135.3% of revenue in Q2. Stock has lost more than one-third of its value year-to-date. Quality Grade D (No Change). Superior Plus Corp Buy<13 11.88 4.81 34.43 -6.57 0.06 51.8 B 8/30/2021 9/15/2021 0.3 58.8 Propane (TSX: SPB, OTC: Distribution SUUIF) Q2 EBITDA is -19% lower than a year ago, key reason for shortfall is -48% lower contribution from US propane distribution operations in seasonally weak quarter for demand (16% of yearly EBITDA) due mainly to higher operating costs resulting from system expansion and acquisitions as well as milder weather than a year ago (14% warmer). Impact is partly offset by cost savings initiatives, better commercial sales as pandemic pressure subsides. Canadian EBITDA is higher by 8% on cost savings. Company also has gains on currency hedging to protect Canadian dollar value of US dollar revenue. Debt to EBITDA of 3.3 times is within target range of 3 to 3.5 times. Adjusted operating cash flow is off -38% in quarter. Results for Q3 are likely to be similar due to seasonally weak demand for heating. Real test of accretive value of recent growth will be Q4. Management lifts bottom end of 2021 EBITDA guidance to CAD390 to CAD420 mil, was CAD380 to CAD420 mil and reflects management confidence in business plan and strength of dividend. Quality Grade C (No change). T-Mobile US SELL 136 N/A 19 -5.89 8.08 0 B 5/1/2013 N/A N/A 62.1 Communications (NSDQ: TMUS) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Market reaction to data breach affecting 50 mil customers (and ongoing resulting class action suit) demonstrates risk to investors with stock at 53.6 times expected next 12 months earnings and a near unanimous bullish consensus among analysts based largely on company's past marketing prowess. Sells $1.3 bil of bonds maturing in 2052 at coupon rate of 3.4% and $700 mil bonds due 2060 at 3.6% as Fitch raises to investment grade and Moody's boosts to Ba1 with positive outlook. US unit of 43.16% owner Deutsche Telekom, a much cheaper and lower risk way to bet on company's continued success. Quality Grade B (no change). TC Energy Corp Buy<50 48.34 5.75 12.44 -6.63 0.87 68.3 A 9/29/2021 10/29/2021 8.6 60.2 Energy Transport (NYSE: TRP, TSX: TRP) Upper single digit dividend increase looks on track for next month. Fitch affirms A- rating of Columbia Pipeline unit, cites well-positioned and well-regulated assets with cash flow locked in by take-or-pay capacity-based contracts and rate settlement with largest customers pending with Federal Energy Regulatory Commission. Memorandum of understanding with Irving Oil to explore energy projects in Canada is a source of future growth. Federal judge in Montana refuses to dismiss company's $15 bil claim against US government for NAFTA violation in cancelling Keystone XL pipeline, a long shot but pursuit of windfall gain presents little risk. Quality Grade A (No Change). Telecom Italia Hold 4.42 2 -2.97 -17.03 0.12 2.2 D 6/21/2021 6/30/2021 N/A 51.2 Intl (NYSE: TIIAY, IM: Communications TIT) Settles EUR2 bil in legal disputes with Vodafone for estimated EUR150 mil. Rival Iliad to co-invest in company's FiberCop unit with goal of 75% coverage of currently unserved areas of Italy by 2025, deal likely will reduce competitive pressures as well as ease/speed financing. Company on track to meet 2021 revenue, cash flow, CAPEX, deleveraging targets, distribution policy with EBITDA forecast for a "low-to-mid single digit (percentage) decrease." Expects stabilization in 2022 as broadband growth and 5G wireless growth become bigger part of business and costs are wrung out. Quality Grade D (No change). Telefonica Hold 4.9 N/A 38.33 3.59 0.24 91.8 D 6/1/2021 6/30/2021 -2.4 74.1 Intl (NYSE: TEF, SM: Communications TEF) Company seeks partner in UK fiber broadband unit as rival BT expands OpenReach network. Closes sale of Costa Rican operations to unit of Liberty Global for $538 mil, company's wireless partner in UK. Proceeds will continue deleveraging efforts but company remains in race to cut down $50.5 bil in debt faster than revenue and cash flows decline with asset sales. Downside pressure on dividend is likely to continue. Quality Grade D (No change). Telefonica Brasil Buy<9 8.13 2.98 -4.39 -9.85 0.07 58.4 C 7/1/2021 N/A -5.3 16 Intl (NYSE: VIV, BZ: Communications VIVT4) Brazil anti-trust officials refer proposed purchase of wireless operations from Oi SA to regulators for further review. Deal still looks likely to close later this year but assets are likely to lose further value the longer it takes as Oi competitive position weakens. Continues to focus on building out fiber broadband network. Stock is low priced at 11.4 times expected next 12 months earnings but political/regulatory uncertainty makes it suitable for aggressive investors only. Quality Grade C (No Change). Telephone & Data Buy<24 20.63 3.39 -5.43 -20.67 0.18 35.3 B 9/14/2021 9/30/2021 3.1 44.5 Communications Systems (NYSE: TDS) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Sells $600 mil of preferred stock at 6% coupon interest rate to fund fiber to the home CAPEX. Moody's rates security Ba3 with stable outlook, reflecting junior status of debt, says company's refinancing efforts "lower the cost of debt financing nand free up additional operating cash flow for network infrastructure investment. Company holding its own on market share with best in class rural wireless and wireline network in rural areas it focuses on. Quality Grade B (No Change). Telstra Corp SELL 14.4 2.28 46.46 6.05 0.18 104.7 D 8/24/2021 9/30/2021 -10.5 53.3 Intl (OTC: TLSYY, ASX: Communications TLS) Holds semi-annual dividend level for payment this month level with year ago. Completes sale of 49% stake in wireless towers unit for AUD2.8 bil, still owns majority stake in new company called Amplitel as buyer is financial partner rather than operator. Management says it will use half the proceeds to buy back stock and the rest to pay down debt. FY2021 (end June 30) earnings are up 2.2% despite revenue decline of -9.1%. Wireless revenue drops -8.1% with EBITDA lower by -9.7%. Management blames pandemic pressure and touts cost cutting efforts but competition is also clearly still taking a bite. Company targets underlying EBITDA of AUD7 to AUD7.3 bil in FY2022, free cash flow after lease payments of AUD3.5 to AUD3.9 bil. Quality Grade D (no change). Telus Corp Buy<25 23.29 4.34 34.02 2.07 0.32 86.1 A 9/9/2021 10/1/2021 6.9 61.8 Intl (NYSE: TU, TSX: T) Communications Low single digit dividend increase looks likely for November as company appears to return to policy of twice annual boosts suspended with pandemic. Partners with General Motors to bring 5G to automobiles in Canada. Company spent CAD1,947.5 mil in 5G wireless spectrum auction this year to buy 142 licenses, purchase easily funded by balance sheet as business momentum picks up. Quality Grade A (No Change). Tesla SELL 733.57 N/A 75.36 22.46 N/A 0 F N/A N/A N/A 35.8 Energy (NSDQ: TSLA) Technology Company has so far avoided reputational/legal damage from accidents involving vehicles, automation technology and battery storage. China is the key market. CEO Elon Musk announces plan to sell electricity in Texas to "cut out the middleman," though will largely operate as other retailers purchasing electricity on wholesale market and targeting current owners of its products for sales. Reverse scale economics of company's home solar business mean this is likely a loss leader to gain more EV sales, company's bread and butter business. Key issue for investors is still lack of a clear value gauge for stock at 112 times expected next 12 months earnings but shares can still spark interest as company is the recognized proxy for electric vehicles growth. Quality Grade F (No Change). Tokyo Electric Hold 2.71 N/A -5.24 N/A N/A 0 C 3/27/2013 N/A N/A 61.2 Int'l Electricity Power (Tokyo: 9501, OTC: TKECF) Company issues JPY30 bil of 3-year green bonds at low coupon rate, demonstrating ability to access low cost capital despite ongoing competitive and regulatory challenges. Latest plan is to build tunnel to release Fukushima water one kilometer offshore. JERA partnership sells stake in Indonesia coal power plants operator. Quality Grade C (No Change). Total Buy<50 44.45 5.81 22.42 -6.97 0.78 65.6 A 6/22/2021 7/16/2021 1.3 41.6 Super Major (NYSE: TOT, FP: FP) Oil/Gas Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Wins contract to install electric vehicle charging stations in Antwerp, Belgium. Closing in on deal to develop oil and solar projects in Iraq at Ratawi oilfield near Basra, including 1 gigawatt solar facility. Plans to develop liquid CO2 carrier with Mitsubishi. May buy 20% stake in what would be world's largest offshore wind generation facility. Will build 800 megawatt solar facility in Qatar. Plans major ramping up of renewable fuels. Earnings and share price to follow oil next few years as remains company's most important business, should be a major benefit as energy cycle moves upward. Quality Grade A (No change). TransAlta Corp Buy<10 9.89 1.44 61.14 4.37 0.05 9.4 C 8/31/2021 10/1/2021 4.5 49.4 Int'l Electricity (NYSE: TAC, TSX: TA) Raises guidance for full year 2021 EBITDA to range of CAD1.1 to CAD1.2 bil, up from previous projection of CAD960 mil to CAD1.08 bil. Free cash flow raised to range of CAD440 mil to CAD515 mil, was CAD340 mil to CAD440 mil. as loss in seasonally weak Q2 contracts to -4 cents per share from -22 cents in year ago quarter on 41.6% higher revenue. Comparable earnings up 39.2%, free cash flow up 52%. Hydro segment EBITDA up more than three-fold. Results robust despite decline in adjusted availability to 84.8% from 91.5% last year on planned maintenance outages. Energy marketing unit also has strong performance. Results and increased guidance should ensure mid-single digit dividend increase early next year. Quality Grade C (No Change). TransAlta Hold 16.08 4.67 40.35 -0.1 0.08 90 B 9/14/2021 9/30/2021 0.4 23.1 Renewable Renewables Energy (TSX: RNW, OTC: TRSWF) Announces acquisition of 122 megawatts of solar generating capacity in North Carolina for $96.65 mil, output is fully contracted to Duke Energy, with remaining term of 12 years and opportunity for upgrades to extend term at strong rate of return. Q2 comparable EBITDA is lower by -15.6% from year ago quarter for yieldco unit of TransAlta. Cash available for distribution is lower by -40.3%, as asset expansion is offset by weaker Australian dollar/Canadian dollar exchange rate, unplanned outages at Canadian natural gas power plants. Management adjusts 2021 guidance lower to account for weaker than anticipated results to date, with cash available for distribution now expected in range of CAD260 to CAD290 mil (97 cents Canadian to CAD1.09 per share). Quality Grade B (No Change). Transmissione Buy<24 23.84 3.52 16.69 5.97 0.63 69 A 6/21/2021 7/8/2021 7.8 73.6 Int'l Electricity Elettricita Rete Nazionale (OTC: TEZNY, IM: TRN) Mid-to-upper single digit percentage boost in semi-annual dividend payable in November appears likely as profitable asset expansion continues for Italy's power grid company. Company rates are adjusted for inflation. Dip in share price last month in response to negative analyst view looks well overdone though company does face some risk from potential regulatory shift. Quality Grade A (No Change). TransUrban Group Buy<12 10.36 3.12 2.81 -2.98 0.22 82.2 C 6/29/2021 8/23/2021 -13.3 61.5 Global Toll Roads (ASX: TCL, OTC: TRAUF) Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Resurgence of pandemic shows signs of denting traffic on company toll roads in eastern Australia. Dividend increased by 34.4% from semi-annual payment a year ago as business model of embedded toll increases and ongoing global development is still on track. Maryland express lanes plan in US wins approval from regulators. Swings to profit in fiscal year 2021 (end June 30) on post-tax gain from asset sale (50% interest in Transurban Chesapeake unit), revenue is lower by -8.8% from previous fiscal year on pademic pressure. Quality Grade C (no change). UGI Corp Buy<48 46.88 2.94 42.06 1.38 0.35 46.8 A 9/14/2021 10/1/2021 9.7 62.2 Energy (NYSE: UGI) Distribution Closes purchase of Mountaineer Gas in West Virginia for enterprise value of $540 mil after regulators approve, adds 215,000 gas distribution customers in state (90% residential) with nearly 6,000 miles of pipes and mains. Further weights company's revenue mix toward reliable sources not directly impacted by commodity prices. Mid-point of FY2021 (end Sept 30) earnings guidance range is $2.95 per share, with management still guiding closer to $3 per share "upper end"of range. Quality Grade A (no change). Union Pacific Corp Buy<220 214.91 1.99 14.59071 -4.514468 1.07 48.7 B 8/30/2021 9/30/2021 11.732136726379 62.557682541785 US Railroad (NYSE: UNP) Resurgence of pandemic pressures may cut into freight volumes again in second half of 2021, though commodity carloads (20% market share) are up 3.2% in last week of August versus a year earlier as business remains robust. Railroad is approved to use up to 20% biodiesel in EMD locomotives, up from previous 5% as company works to reduce exposure to volatile fuel costs and CO2 emissions. Quality Grade B (No change). United Utilities Hold 29.44 5.17 36.93477 5.694478 0.801739 76.9 B 6/24/2021 8/9/2021 5.0980968475342 73.603999024628 Regulated Water (OTC: UUGRY, LSE: UU) Low single digit percentage increase in semi-annual dividend appears set for November as combination of system investment, inflation related rate adjustments and cost cutting keep earnings predictable. Issues low cost debt (coupon rate 0.175%) due 2030 in Japanese Yen (JPY11 bil) as continues to access bond market on favorable terms. Shares are fully priced at 22.1 times expected next 12 months earnings. Quality Grade B (no change). Uniti Group SELL 13.19 4.55 48.01223 23.15276 0.15 36.6 D 9/16/2021 10/1/2021 -37.00394821167 173.20040733298 Communications (NSDQ: UNIT) Demand for communications infrastructure is tailwind but management still faces huge challenge diversifying revenue and cash flow that's still heavily dependent on solvency of privately held Windstream Holdings. Q2 Windstream revenue dropped -4.8% from year ago quarter. Enterprise business is lower by -11.6% as company is still having trouble holding onto business customers in a fiercely competitive environment dominated by larger and stronger companies. Management is focused on squeezing out costs, guidance is for -1% drop in EBITDAR from a year ago in 2021. Quality Grade D (No change). Unitil Corp Buy<55 49.69 3.05 23.43077 -11.23887 0.38 63.3 A 8/12/2021 8/27/2021 1.3560974597931 60.314061384725 Regulated (NYSE: UTL) Elec/Gas Successful offering of 800,000 shares this summer will fund CAPEX and boost balance sheet, though predictably triggered a pullback in price last month. Outcome of pending utility rate cases will be key to meeting target in 2022 but amicable outcomes expected. Takeover appeal is high with stock at 20.7 times expected next 12 months earnings, strong utility franchise and market cap now less than $800 mil. Quality Grade A (No Change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date Veolia Environnment Hold 35.22 1.82 55.49035 12.36242 0.848633 52.2 B 5/10/2021 5/26/2021 -5.5448431968689 70.58315732122 Utility Technology (OTC: VEOEY, FP: VIE) Mid-point of 2021 EBITDA guidance is EUR4.1 bil. Management still expects Suez acquisition to close following European Union anti-trust clearance, expected "by the end of 2021." Multi- year plans to improve profitability should continue business momentum in second half of year despite resumption of pandemic pressures in some areas. Building major water regeneration services facility in Saudi Arabia. Quality Grade B (No Change). Verizon Buy<65 55.43 4.62 -4.298895 -2.173319 0.64 47.4 A 10/7/2021 11/1/2021 2.0752813816071 68.486800504051 Communications Communications (NYSE: VZ) Raises quarterly dividend by 1.25 cents per share (up 2%), confirming financial strategy remains on track after large wireless spectrum purchase this spring. Launches $3.5 bil debt exchange offer for 8 bond issues maturing in 2024-26, sells $1 bil in new green bonds due 2041 at coupon interest rate of just 2.85% as continues to see major opportunities to cut costs with refinancing and using massive free cash flow to retire debt. Fitch affirms A- credit rating with stable outlook, cites "strong competitive position in wireless business with industry low churn rates, high margins." Company's commitments for TracFone purchase from America Movil increase likelihood of closing the deal by the end of the year. Quality Grade A (No Change). Vestas Wind Buy<40 41.75 0.65 40.4915 12.20102 1.69 30.1 C 4/9/2021 4/13/2021 -3.8932774066925 22.354300808981 Utility Technology Systems (OTC: VWSYF, DC: VWS) Wins 290 megawatt order for wind turbines in US, 396 MW in Australia. Unit servicing exsiting facilities continues to grow and provide recurring revenue. Management cuts mid-point of guidance for 2021 revenue to EUR16 bil from previous EUR16.5 bil, EBIT margin to 6% from 7% on impact of cost inflation from supply chain disruption. Q2 order intake up 40.6% from a year ago, backlog now EUR48.1 bil up from EUR35.1 bil. Q2 revenue advanced by 23% and company swung to a gain from last year's loss. Quality Grade C (no change). Vistra Energy Corp Buy<25 19.11 3.14 8.122083 10.72243 0.15 72.3 C 9/15/2021 9/30/2021 N/A 52.866565195332 Electricity (NYSE: VST) Strategic review results by November. Mid-point of 2021 EBITDA guidance is still $1.675 bil, free cash flow $400 mil. Completes expansion of battery storage system in California (Moss Landing) serving PG&E under 10-year "resource adequacy" agreement, capacity is now 400 megawatts/1,600 MWH. Company continues to be priced for a takeover at 5.6 times expected next 12 months earnings. All 10 Wall Street analysts covering company as tracked by Bloomberg Intelligence now rate stock a buy, with an average 12-month price target in mid-20s. Insiders have also been buying shares. Quality Grade C (No Change). Vodafone Buy<20 16.97 6.13 27.19392 -5.418129 0.532412 23.1 B 6/24/2021 8/6/2021 -15.705267906189 53.95935529082 Intl (NYSE: VOD, LN: Communications VOD) Mid-point of FY2022 EBITDA guidance is EUR15.2 bil, free cash flow target is "at least" EUR5.2 bil. Semi-annual dividend to be declared in November looks set to be flat with payments made since February 2020. Company and Deutsche Telekom introduce 5G contracts for BMW, deploys private 5G network for Porsche. Will collect EUR150 mil from global settlement of claims with Telecom Italia. Income held back by pandemic impact on roaming revenue but core business looks solid as management continues to streamline. Quality Grade B (No Change). Conrad’s Utility Investor Utility Report Card Security Rating Price Yield 12-Mo. 3-Mo. DVD / Payout Quality Ex-DVD DVD 3-Year DVD Debt/ Capital Industry (Exchange: Ticker) Total Total Share Ratio Grade Date Payment Growth Return Return (CAD) Date WEC Energy Group Buy<90 96.08 2.82 2.43 3.39 0.68 65.6 A 8/12/2021 9/1/2021 7 57.3 Regulated (NYSE: WEC) Elec/Gas Mid-point of 2021 earnings per share guidance range is $4.035. Wisconsin regulators approve settlement with customers to keep rates at current levels through 2022. Rate decisions in Illinois and Michigan for gas utilities (together less than 5% of earnings) will be minor growth drivers next year as reflect what should be amicable settlements, with Illinois administrative law judge recommending 9.67% return on equity (current ROE is 9.05%). Stock is fully valued at 24.6 times expected next 12 months earnings. Quality Grade A (No Change). Williams Companies Buy<28 24.97 6.57 29.35209 -9.340044 0.41 54.1 B 9/9/2021 9/27/2021 8.1687183380127 60.709666989977 Energy Transport (NYSE: WMB) Company appears on track for low single digit dividend increase next year as operations run well and conservative asset expansion continues. Midstream infrastructure appears to survive major damage from Hurricane Ida, though some assets shut as surrounding area affected. Shares following energy prices but offer attractive and safe yield at mid-20s price. Quality Grade B (no change). Xcel Energy Buy<65 69.8 2.62 2.385192 0.2600914 0.4575 62 A 9/14/2021 10/20/2021 6.2459063529968 60.375717043199 Regulated (NYSE: XEL) Elec/Gas Earnings per share guidance range mid-point is $2.95 for 2021. Company has new president and CEO as previous CEO moves to executive chairman role, should ensure continuity of company's successful business expansion and energy transition. Signs memorandum of understanding with Oregon firm Nuscale to develop small modular nuclear reactors. Company has asked Colorado and Minnesota regulators to approve 10 gigawatts of new renewable energy generation capacity. Rate cases still pending for gas cost recovery from Winter Storm Uri but appear to be moving toward successful conclusion. Quality Grade A (No Change). York Water Hold 52.94 1.42 20.56547 4.742469 0.1874 57.5 A 9/29/2021 10/15/2021 3.9995219707489 46.312377026141 Regulated Water (NSDQ: YORW) Low risk water utility franchise with constructive Pennsylvania regulation continues to support low to mid-single digit annual dividend growth but fully priced for it at 40.4 times expected next 12 months earnings after reaching new all-time high. Quality Grade A (No Change).

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