The Right Direction
Issue 8 - 11/7/2022
WEC Energy Group to acquire 80% ownership of Maple Flats Solar Energy Center
- WEC Energy Group made an announcement to acquire 80% ownership in the Maple Flats Solar Energy Center.
- The Maple Flats Solar Energy Center is a 250-megawatt project.
- The site will host 800,000 solar panels across 1,500 acres.
- Commercial operation is expected in early 2024.
Who is WEC Energy Group Inc (WEC)?
WEC Energy Group's electric and gas utility serves electric and gas to customers in Illinois, Michigan, Minnesota, and Wisconsin. The company also owns a 60% stake in American Transmission Co. WEC's asset mix is approximately 47% electric generation and distribution, 36% gas distribution, 12% electric transmission, and 5% unregulated renewable generation.
Why are they in the news?
WEC Energy Group (NYSE: WEC) today announced that it has agreed to acquire an 80% ownership interest in the Maple Flats Solar Energy Center. Located in Clay County, Illinois, the project is being developed by Invenergy — a leading global developer and operator of sustainable energy solutions.
Opportunity:
To know which companies will benefit from this acquisition, financial analysts study the language in every company’s description and news releases, an effort that can take multiple days or even weeks. Over this time period, the information arbitrage of which companies' prices will rise is eroded.
Capturing information arbitrage opportunities can be done using advanced techniques in the area of Natural Language Processing and Understanding (NLP/NLU). To pinpoint which energy producers companies will react to this news, we leverage Vectorspace AI’s Real-Time Thematic Basket Generator to identify these hidden relationships between WEC and other energy producers companies and other stocks to get the following basket of stocks:
Vector Score Summary
Providing near real-time information, the Vector Score is determined with the use of rich text company descriptions and articles from verified global news sources when combined with patent, and intellectual property.
MGE Energy (MGEE)
MGE Energy Inc is a U.S. public utilities holding company based in Wisconsin. The firm generates, purchases, and distributes electricity and natural gas, and also provides transmission services. Primarily, the company generates electricity from coal and purchased power, but also from natural gas, fuel oil, and renewable sources. MGE operates through four segments, Regulated electric utility operations, Regulated gas utility operations, Non Regulated energy operations (owning and leasing electric generating capacity), and Transmission investments. The majority of electric retail revenue is derived from commercial consumers whereas the majority of natural gas revenue is derived from residential consumers.
Sector: Utilities Industry: Information Technology Services
NorthWestern Corp (NWE)
NorthWestern Corp provides electricity and natural gas services in the Upper Midwest and Northwest of the U.S. in the states of Montana, South Dakota, Nebraska, and Yellowstone National Park. The primary segments of the company include Electric operations, which includes the generation, purchase, transmission and distribution of electricity, and Natural Gas operations, which includes the production, purchase, transmission, storage, and distribution of natural gas. The company uses thermal, wind, hydro, or renewable energy in varying quantities, depending on the location of the facilities, in order to generate power. The company derives the majority of retail electric utility revenue from commercial and residential sales.
Sector: Technology Industry: utilities - diversified
Allete (ALE)
ALLETE Inc is a regulated electric utility company operating primarily in America's Upper Midwest region. Through its subsidiaries, ALLETE provides regulated electric, natural gas, and water services. The company's Regulated Operations division, which houses its energy generation, transmission, and distribution activities, is responsible for most of ALLETE's total revenue by way of electricity sales and transmission service fees. The majority of the energy sold and distributed by ALLETE is produced by its own portfolio of coal-fired, wind, natural gas-fired, biomass, and hydroelectric power plants. Coal fuel sources, specifically, account for most of this. The company's major customers are industrial entities, such as major iron ore, wood products, and pipeline producers.
Sector: Technology Industry: utilities - diversified
About Vectorspace AI
Vectorspace AI develops scientific data engineering pipelines that leverage language models trained to detect hidden relationships between cryptos, stocks, themes, company-specific events, and global events to uncover opportunities and enhance investor risk and return metrics. To view all of our products, please visit us at www.vectorspace.ai and register for a complimentary trial of the Real-Time Thematic Basket Generator for stocks to get started.