Integrys Energy Group Inc.
) continues to expand and improve its utility infrastructure. The
company has announced that its business unit Peoples Gas has
started its natural gas modernization program for 2014. Peoples
Gas intends to invest $0.3 billion for the project.
Peoples Gas and the five contractors - Intren, KS Energy
Services, Meade, Michels Pipeline Construction and NPL - will
jointly upgrade the utility's natural gas system based in
Per the program, they will install polyethylene main, retire
aging cast iron pipes and shift meters to the outside of
buildings. In addition, the companies will improve system
pressure. These initiatives will enable Peoples Gas to provide
reliable natural gas distribution services to its customers.
The U.S. government continues to impose new guidelines to
maintain reliability in natural gas supply. The Pipeline and
Hazardous Materials Safety Administration's main aim is to
improve the aging natural gas pipelines in the U.S.
We note that Integrys Energy is religiously following government
mandates and continues to improve its existing infrastructure
while adding new assets to its portfolio. During third-quarter
2013, the company installed around 20 miles of main in Chicago
under its natural gas main replacement project. Over the next 10
years, Integrys Energy plans to modernize its old natural gas
infrastructure in the state of Illinois.
In Jul 2013, the Illinois General Assembly passed the Natural Gas
Consumer, Safety & Reliability Act (Public Act 98-0057). The
act will enable utility providers to recoup their invested fund
for infrastructure development through customer bills adjustment
and encourage the companies to invest more to upgrade their aging
Under its capital expenditure program, Integrys Energy invested
$0.47 billion during the first nine months of 2013. The company
plans to invest approximately $2.9 billion within a time span of
2013 to 2015.
The timely completion of these projects will enable Integrys
Energy to provide uninterrupted natural gas services to its
customers while improving consumer safety.
Integrys Energy currently has a Zacks Rank #2 (Buy). Other
players in the utility industry looking equally good at current
CMS Energy Corporation
). All these stocks hold a Zacks Rank #2.
CMS ENERGY (CMS): Free Stock Analysis Report
ENTERGY CORP (ETR): Free Stock Analysis
EXELON CORP (EXC): Free Stock Analysis Report
INTEGRYS ENERGY (TEG): Free Stock Analysis
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