Corrects share price data for Clean Energy Fuels. By Kevin Grewal, Contributing Analyst at www.smartstops.net
The future of cleaner renewable energy looks extremely bright after receiving a big boost.
Los Angeles Mayors Antonio Villaraigosa recently announced that he wants Los Angeles to completely eliminate the use of electricity made from coal by 2020 and replace it with cleaner renewable energy sources.
This a huge boost for the industry because the Los Angeles Department of Water and Power (LADWP) is the largest city-owned utility in the U.S. with 1.45 million customers.As of now, LADWP gets nearly 40% of its electricity from coal-powered plants outside of the state, with the remaining 60% from natural gas, nuclear, and large hydroelectric sources. By 2020, the LADWP is expected to 40% renewable power, a huge plus for the industry. In addition, the House of Representative recently passed the Waxman-Clean Energy Bill which requires electric utilities to meet 20% of their electricity demand through renewable energy sources by 2020, puts mandates on buildings, appliances and industry to meet new-energy saving standards, and includes a measure to invest nearly $190 billion in new clean energy technologies to aid in the production of energy efficiency and a reduction in carbon emissions. These initiatives could provide opportunities for these equities: PowerShares WilderHill Clean Energy (PBW), which closed Thursday at $8.94, up 53% since a March low of $5.87. PowerShares Global Clean Energy ETF (PBD), which rebounded nicely to close at $13.88 on July 9, a 59% jump since a March low of $8.73.