In this piece, we will take a look at the 16 biggest utility companies in the U.S. For more companies, head on over to 5 Biggest Utility Companies in the U.S.
Utilities have been one of the hottest topics of 2022, as the Russian invasion of Ukraine ushered in a wave of inflation, especially in Europe. In fact, in the 38 member countries of the Organization for Economic Co-operation and Development (OECD), energy inflation stood at 28.1% on average. The bulk of this inflation was contributed by 13 countries, all of which saw energy inflation soar above a painful 30%. The largest inflation was in Italy, where energy prices soared by a whopping 71% annually in October.
The U.S, on the other hand, saw relatively 'muted' energy inflation that stood at just 17.3% in the same month. This was the third lowest among all G7 economies, and the primary reason that Americans remained better off was that they do not rely on Russian energy imports. However, this does not mean that prices are low, as natural gas and coal shortages have nevertheless pushed up retail utility prices to five year highs especially as record natural gas prices ended up driving the cost of producing electricity. For America, these price increases are unavoidable since the largest portion (35.4%) of electricity is generated via natural gas. The price volatility itself has expedited the shift to renewable energy among utilities according to the IEA.
However, these prices, which end up in massive profits for power producers, do have a silver lining. According to Bloomberg, these companies are selling excess capacity at lower prices - rates that coal and gas producers cannot match. This, according to analysts, can end up putting the coal companies out of business and reducing emissions in the long term. The latest in the U.S. energy and utility sector these days is Winter Storm Elliott which has disrupted oil and gas output - which in turn has led to higher prices and power blackouts all over the country. U.S. benchmark oil prices jumped to $79.56 a barrel while power prices soared to $3,700 per megawatt hour. Some oil companies that suffered from the reduced output are Exxon Mobil Corporation (NYSE:XOM), Valero Energy Corporation (NYSE:VLO), and Marathon Petroleum Corporation (NYSE:MPC).
Today we will look at which companies are the largest when it comes to providing electricity and gas to Americans. Some largest U.S. utilities are Duke Energy Corporation (NYSE:DUK), NextEra Energy, Inc. (NYSE:NEE), and The Southern Company (NYSE:SO).
Our Methodology
We scoured through all U.S. based utility companies to sift out the top players and then ranked them according to their market capitalization.
Market Capitalization as of December 23, 2022: $21.7 billion
PPL Corporation (NYSE:PPL) is a Pennsylvania based electricity and gas provider. It serves customers in its home state and in Kentucky.
As is the case with oil companies, PPL Corporation (NYSE:PPL) is also targeting renewable energy to expand its capacity. The firm announced in October that it will add wind power generation capacity to New England. This is crucial since according to the EIA, this region could see electricity prices at $215 per megawatt hour next month as it has high demand but limited natural gas or LNG pipeline capacity.
28 out of the 920 hedge funds polled by Insider Monkey during Q3 2022 had bought PPL Corporation (NYSE:PPL)'s shares.
PPL Corporation (NYSE:PPL)'s largest investor is Ken Griffin's Citadel Investment Group which owns 7.1 million shares that are worth $182 million.
Along with NextEra Energy, Inc. (NYSE:NEE), Duke Energy Corporation (NYSE:DUK), and The Southern Company (NYSE:SO), PPL Corporation (NYSE:PPL) is one of the largest utilities in the U.S.
Market Capitalization as of December 23, 2022: $22.9 billion
DTE Energy Company (NYSE:DTE) is an electricity and gas company that is headquartered in Detroit, Michigan. The company has a little over two million customers, making it one of the largest utilities in the U.S.
A large effect of the energy crisis resulting from the Ukraine war is the shift to renewables according to the International Energy Agency (IEA), and DTE Energy Company (NYSE:DTE) is the perfect example of this as outlined in December 2022 that it is adding 400 megawatts of solar electric power in Michigan as part of a voluntary program.
By the end of this year's third quarter, 30 of the 920 hedge funds polled by Insider Monkey had invested in DTE Energy Company (NYSE:DTE).
Out of these, DTE Energy Company (NYSE:DTE)'s largest investor is Israel Englander's Millennium Management which owns 732,829 shares that are worth $84 million.
Market Capitalization as of December 23, 2022: $23.1 billion
Ameren Corporation (NYSE:AEE) is a Missouri based utility that transmits electricity and gas and produces its own power.
Ameren Corporation (NYSE:AEE) is building a massive 200 megawatt solar power installation in Missouri, through which it aims to 40,000 homes. The company hopes that the project will begin transmitting electricity in 2024.
Insider Monkey's 920 hedge fund survey revealed that 26 had invested in Ameren Corporation (NYSE:AEE) during this year's September quarter.
Ameren Corporation (NYSE:AEE)'s largest shareholder in our database is Israel Englander's Millennium Management which owns 825,367 shares that are worth $66 million.
Market Capitalization as of December 23, 2022: $23.9 billion
Entergy Corporation (NYSE:ETR) is a Louisiana based utility that is also one of the largest in America through its 24,000 megawatts of power generation capacity.
Entergy Corporation (NYSE:ETR) is another U.S. utility that is accelerating its renewables push. It scored a big win in November 2022, when the Arkansas Public Service Commission approved the company's largest solar facility which is capable of generating 250 megawatts of electricity.
31 of the 920 hedge funds polled by Insider Monkey during 2022's third quarter had held a stake in Entergy Corporation (NYSE:ETR).
Entergy Corporation (NYSE:ETR)'s largest hedge fund investor is Israel Englander's Millennium Management which owns 878,364 shares that are worth $88 million.
Market Capitalization as of December 23, 2022: $24 billion
FirstEnergy Corp. (NYSE:FE) is an Ohio based utility that serves customers in several U.S. states including Maryland, West Virginia, New Jersey, and New York.
FirstEnergy Corp. (NYSE:FE) is taking the first steps to build a 26 acre solar power generation facility in West Virginia. The firm is repurposing an ash landfill for the plant.
As part of their Q3 2022 investments, 41 of the 920 hedge funds surveyed by Insider Monkey had bought FirstEnergy Corp. (NYSE:FE)'s shares.
FirstEnergy Corp. (NYSE:FE)'s largest investor in our database is Carl Icahn's Icahn Capital LP which owns 18 million shares that are worth $701 million.
Market Capitalization as of December 23, 2022: $24 billion
Constellation Energy Corporation (NASDAQ:CEG) is one of the largest utilities in America, as it has more than 30,000 megawatts of power generation capacity under its belt through a variety of sources such as wind, solar, gas, nuclear, and hydroelectric.
After its top team met with Guggenheim in September 2022, Constellation Energy Corporation (NASDAQ:CEG) scored a price target upgrade as the financial firm raised the target to $108 from $91 noting that the company is a "clear winner" from the Inflation Reduction Act's push to renewable energy.
By the end of this year's September quarter, 54 out of the 920 hedge funds polled by Insider Monkey had bought Constellation Energy Corporation (NASDAQ:CEG)'s shares.
Out of these, John Smith Clark's Southpoint Capital Advisors is Constellation Energy Corporation (NASDAQ:CEG)'s largest investor. It owns 3.5 million shares that are worth $291 million.
Market Capitalization as of December 23, 2022: $29.3 billion
Eversource Energy (NYSE:ES) distributes electricity, natural gas, and water. It is headquartered in Springfield, Massachusetts.
Eversource Energy (NYSE:ES) is currently battling Winter Storm Elliott, which is also battering its home ground of New England. The company's chief of electrical operations has cautioned that some people could see power outages last for more than two days, and outlined that his company has canceled all vacations to ensure that teams are on standby.
30 out of the 90 hedge funds polled by Insider Monkey for their third quarter of 2022 investments had bought Eversource Energy (NYSE:ES)'s shares.
Eversource Energy (NYSE:ES)'s largest shareholder is Noam Gottesman's GLG Partners which owns 1.6 million shares that are worth $130 million.
Market Capitalization as of December 23, 2022: $30.5 billion
Public Service Enterprise Group Incorporated (NYSE:PEG) is a New Jersey based electricity and gas utility that is one of the largest in the U.S. with more than 20,000 miles of power distribution lines and close to an equal amount of gas mains.
Public Service Enterprise Group Incorporated (NYSE:PEG) is also a large nuclear power generator, with 3,770 megawatts of generation capacity. The company hopes to benefit from the Inflation Reduction Act which will provide it with better visibility into its nuclear power cash flows.
By the end of this year's third quarter, 31 of the 920 hedge funds part of Insider Monkey's survey had invested in Public Service Enterprise Group Incorporated (NYSE:PEG).
Ken Griffin's Citadel Investment Group is Public Service Enterprise Group Incorporated (NYSE:PEG)'s largest investor in our database. It owns 3.2 million shares that are worth $184 million.
Market Capitalization as of December 23, 2022: $34 billion
Consolidated Edison, Inc. (NYSE:ED) is a diversified utility with its toes in delivering electricity, steam, and gas all over America. The firm serves customers in New Jersey and New York.
Consolidated Edison, Inc. (NYSE:ED) is moving full steam ahead with the shift to green energy, as the firm is aim to spend a whopping $72 billion in New York for this purpose. Out of this, executives believe that spending by 2024 alone could be worth $15.7 billion.
Insider Monkey studied 920 hedge fund holdings to discover that 27 had bought Consolidated Edison, Inc. (NYSE:ED)'s shares in Q3 2022.
Consolidated Edison, Inc. (NYSE:ED)'s largest shareholder is Ken Griffin's Citadel Investment Group which owns 1.5 million shares that are worth $134 million.
Market Capitalization as of December 23, 2022: $34 billion
PG&E Corporation (NYSE:PCG) is one of America's largest electricity utilities through a huge network of more than 100,000 miles of transmission and distribution lines. The firm also provides natural gas.
PG&E Corporation (NYSE:PCG) has partnered up with Tesla, Inc. (NASDAQ:TSLA) to create a 'virtual power plant' that will enable PG&E Corporation (NYSE:PCG)'s customers with Tesla's batteries to pool their resources together to create a distributed battery.
46 of the 920 hedge funds part of Insider Monkey's Q3 2022 survey of 920 hedge funds had invested in PG&E Corporation (NYSE:PCG).
PG&E Corporation (NYSE:PCG)'s largest investor is Dan Loeb's Third Point which owns 63 million shares that are worth $792 million.
Market Capitalization as of December 23, 2022: $49 billion
American Electric Power Company, Inc. (NASDAQ:AEP) is an Ohio-based electric utility that serves both retail and wholesale customers.
American Electric Power Company, Inc. (NASDAQ:AEP) is aggressively targeting renewable energy to power its customers, as it aims to spend $9 billion for carbon free electricity generation between 2023 and 2027. The firm is aiming at net zero emissions by 2045.
Insider Monkey scoured through 920 hedge fund portfolios for their third quarter of 2022 investments to discover that 35 had bought American Electric Power Company, Inc. (NASDAQ:AEP)'s shares.
American Electric Power Company, Inc. (NASDAQ:AEP)'s largest hedge fund investor is Jim Simons' Renaissance Technologies which owns 2 million shares worth $177 million.
American Electric Power Company, Inc. (NASDAQ:AEP), Duke Energy Corporation (NYSE:DUK), NextEra Energy, Inc. (NYSE:NEE), and The Southern Company (NYSE:SO) are the biggest utility companies in the U.S.
Click to continue reading and see 5 Biggest Utility Companies in the U.S.
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Disclosure: None. 16 Biggest Utility Companies in the U.S. is originally published on Insider Monkey.
