Utilities Aren't Shut Down, But They Will Still Feel a COVID-19 Impact
Most people will do just about anything to keep the lights on, the refrigerator running, and the heat going. Think back to the last long blackout you suffered through and you'll quickly understand why. That inherent demand is one of the core reasons why electric utilities are considered a relatively safe investment option. But they aren't risk free, a fact that's important to remember as earnings season is upon us and utilities start reporting the early impact of COVID-19.
Early on it became obvious that having multiple electric utilities serving the same region wasn't a feasible long-term option. But one provider serving an area basically results in a monopoly, which isn't a good outcome, either. So the modern grid was built with a lot of government oversight to offset the risk that a monopoly would lead to unconstrained price increases for a product that everyone wants and, at this point, really needs.
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Source Fool.com
