...Robust 2014 Earnings Growth: The recently concluded fourth-quarter and year-end 2014 earnings season highlights the continuation of a strong earnings trend in the sector. The median earnings grew by 6% year over year for Fitch Ratings' sample of utilities, power and gas companies. Maturation of investment projects, rate increases, a sales rebound and cost control were some of the key drivers of the earnings growth. Several utilities announced step ups to their 2015 dividend per share, demonstrating confidence in their longer term outlooks. 2015 Earnings Guidance Toned Down: A majority of utility companies provided 2015 earnings guidance, which suggests a modest 2%¡4% earnings growth over 2014. Normalization for weather, staid industrial growth assumptions after a strong 2014, weaker outlooks for commodity-sensitive businesses and general conservatism seem to be included in 2015 expectations. Several companies noted pension expense headwinds from actuarial changes to mortality rates and...
