Enbridge invests in geothermal power

Article Excerpt

ENBRIDGE INC. $42 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 1.0 billion; Market cap: $42.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.enbridge.com) has opened its first geothermal power plant. This facility, which is located near Vale, Oregon, taps into heat from the earth’s core to generate electricity. Enbridge paid $23.8 million for a 20% stake in this plant. U.S. Geothermal Inc. (New York symbol HTM) owns the other 80%. Power from geothermal plants is much more reliable than solar and wind projects. That cuts the risk of this investment. As well, the plant has a 25-year deal to sell its electricity to Idaho’s power grid. Enbridge is a buy. buy…