Shares of power-plant operators fell sharply ahead of the Federal Reserve's rate decision. Utilities are considered to be the most vulnerable sector of the 11 in the Standard & Poor's 500 to the negative implications of higher interest rates. One brokerage said renewable-energy producers could see a range of outcomes from the tax bill before Congress, which could either increase or reduce tax advantages, depending on which version is adopted. "Tax reform is a key near-term uncertainty for the U.S. wind and solar markets," said analysts at brokerage Morgan Stanley, in a research note. The Morgan Stanley analysts said it was unlikely that tax incentives for wind and solar would be done away with entirely, some versions of the tax bill amend the terms of the incentives, the analysts noted. The economics of wind-based energy production put that source at a considerable advantages to solar and other forms, the Morgan Stanley analysts said. "Wind is the lowest cost form of new generation in many markets by a wide margin," the analysts said, adding that the wind costs are set to continue declining.
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(END) Dow Jones Newswires
December 12, 2017 16:27 ET (21:27 GMT)