Avangrid is majority-owned by European utility Iberdrola. Avangrid investors must be comfortable with regulated operations across the Northeast and the outlook for the U.S. onshore and offshore renewable energy growth.
Avangrid's diversified set of utilities operate in supportive regulatory jurisdictions, reducing the risk of adverse rulings and supporting long-term earnings and dividend growth.
Bears
Avangrid's aggressive investment plan increases regulatory risk, particularly with offshore wind where costs are rising. Regulatory relationships in the Northeast can be challenging at times.
Avangrid operates two business units, Networks and Renewables. Networks operates eight regulated electric and natural gas utilities across New York, Maine, Connecticut, and Massachusetts, serving over 3 million customers. Renewables has historically focused on developing onshore wind projects but is looking to make developments in solar and offshore wind over the next five years. It operates nearly 8.6 gigawatts of renewable energy projects across the U.S. Spanish utility Iberdrola spun off Avangrid's predecessor, Iberdrola USA, in 2015. Iberdrola owns 81.6% of Avangrid and has proposed to acquire the remaining shares.