SCANA Corporation (SCG), The Southern Company (SO), NextEra Energy, Inc. (NEE): Will Natural Gas Kill Nuclear?

Nuclear or natural gas?
Cheap natural gas has put many energy investors up against a wall. But there are two reasons nuclear investors have room to breathe:

1. Natural gas prices are on the rise, and are expected to continue to rise for at least the next 25 years.
2. Most nuclear plants have already had their 40-year licenses extended for another 20 years, meaning 2030 is the next decision point. That gives utilities more than 15 years to feel out nuclear’s cost competitiveness before potentially reorganizing their energy portfolios.

Foolish bottom line
Nuclear’s on-demand, relatively clean baseload energy with low operating costs is hard to pass up. And, at least for now, nuclear-centric utilities can enjoy a respite from natural gas nightmares. Nuclear has its place in our nation’s electricity generation and, although there’s no guarantee it’s getting any bigger, it certainly won’t be the death of any dividend stock.

The article Will Natural Gas Kill Nuclear? originally appeared on Fool.com.

Motley Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo.The Motley Fool recommends Exelon and Southern Company.

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