WGL Energy To Build Solar Array For Susquehanna University

WGL Holding Company (NYSE:WGL) announced that its unit WGL Energy Systems (“WGL Energy”), has entered into an agreement to develop a 3.9 megawatt (MW) DC (3 AC MW) ground-mounted solar array for Susquehanna University.

Green energy generation from the solar array installation is expected to produce enough power to meet 30% of the university’s electricity needs.

Details of the agreement

The solar array is estimated to produce over 5,300 megawatt hours (MWh) per year of electricity. This is projected to be sufficient for powering the campus’ residence halls. The university has agreed to buy the electricity produced by the company under a 25-year power purchase agreement (“PPA”).

The company expects to benefit from its new alliance with the Susquehanna University, as it is so far the largest university-sponsored solar array in Pennsylvania.

How Will this be Beneficial?

We anticipate the aforementioned solar project, which is the company’s first solar project in Pennsylvania, to aid it to strengthen presence in the region and also help win more customers going ahead. The company’s ability to add new orders and customers will continue to drive its performance as we move towards 2018.

Price Movement

Shares of WGL Holdings have outperformed the industry in the last three months. The company’s shares gained 1.2%, against the industry’s loss of 0.8%.

Such outperformance can be attributed to the company’s performance duringfiscal year ended Sep 30, 2017, that benefited strongly due to higher number of customers among other factors.

Zacks Ranks & Key Picks

WGL Holdings currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include Atmos Energy Corporation (NYSE:ATO) , Northwest Natural Gas Company (NYSE:NWN) and ONE Gas, Inc. (NYSE:OGS) , all of which carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Atmos Energy delivered an average surprise of 10.61% in the trailing four quarters. Its 2017 estimates have risen by 0.3% to $3.61 per share in the last 60 days.

Northwest Natural delivered an average surprise of 16.34% in the trailing four quarters. Its 2017 estimates have risen by 0.5% to $2.18 per share in the last 60 days.

ONE Gas delivered an average surprise of 7.47% in the trailing four quarters. Its 2017 estimates have risen by 1% to $3.02 per share in the last 60 days.

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