EP is being sued by the state of California, along with Enron, etc. Governor Davis may have his political future depending on the outcome of these lawsuits, so he won't back down easily.
As to the merits of the suit, my feeling is that there is not much there. But still, being bogged down in a lawsuit for many years, and probably paying a heavy nuisance value settlement, is going to drag on EP I'd suppose.
IDA, utility with no nuclear power, warned of earnings today because of the drought, and is down $7. If they keep the dividend, it would be yealding 7%. I think they will keep the dividend at least a year, since they have had very high pay-out ratio before, even over 100% I believe. If the drought continues, though, it would be problematic. IDA has also been sued by California, but this is probably not significant for them.
GTW
GTW |
