UTILITIES SEE STOCK PRICES RISE SHARPLY PG&E UPGRADED BY ANALYST.Byline: Brent Hopkins Staff Writer Turn on the lights, the party isn't over - utility stocks enjoyed a dramatic surge on Tuesday. PG&E Corp., whose subsidiary Pacific Gas and Electric has flickered since it filed for bankruptcy last Friday, shot upward, reaching $8.64 in after-hours trading after-hours trading The trading of securities after the exchanges are closed. After-hours trading often refers to trading a listed security in the over-the-counter market after the exchanges have been closed for the day. , a 23 percent gain. The one-time stalwart of sound investment had traded in the $30 range as recently as last September, but has plunged titanically in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of California's energy crisis. Last week's filing brought it to a nadir, dropping from $11.50 to $6.50 over the weekend. Paul Patterson, analyst for Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. saw this as an investment opportunity, upgrading his rating from hold to buy. ``Our upgrade is due to a number of factors, including PG&E's current price, which has fallen considerably, and the value of its non-regulated operations,'' Patterson said. Edison International, parent of beleaguered be·lea·guer tr.v. be·lea·guered, be·lea·guer·ing, be·lea·guers 1. To harass; beset: We are beleaguered by problems. 2. To surround with troops; besiege. Southern California Edison Southern California Edison (or SCE Corp), the largest subsidiary of Edison International (NYSE: EIX), is the primary electricity supply company for much of Southern California. It provides 11 million people with electricity. , similarly shot upward. Following negotiations with state officials to help the troubled utility, whose share price has skidded from the high $20s in September to $7 on Monday, Edison appears to be emerging from the fire. It negotiated a $2.76 billion agreement on Monday to sell its transmission lines to the state, and now enjoys California's protection of its credit. Accordingly, to avert future financial troubles, the utility will be able to raise rates that were previously frozen by deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. statutes. Following Monday's announcements, Edison International's stock enjoyed a healthy boost, jumping $2.46 to close at $11.38, an increase of more than 27 percent. |
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