Record heat impact on utilities: Here's what to know

Around 75 million Americans are under excessive heat warnings as temperatures tip in a record territory and as people cranked their AC units, One group of companies could stand to benefit. Our Pippa Stevens has the details. Hi, Pippa. Hey, Michael. We're talking about utilities. It is really hot across much of the country. And during times of excessive heat, utilities sell more power as people turn up their air conditioners, which is positive for revenue and utilities earnings power, although there are some caveats based on which state a utility is in. But one group that could really do well here is the independent power producers like Vistra, Constellation Energy Energy and Talon, which operate in restructured markets, but simply they own generation assets and sell into competitive markets. And so when demand rises and power prices are higher, they make money. And while extreme heat might not have an immediate impact on regulated utilities, longer term, it's yet another strain on the grid which helps utilities case when asking regulators to approve higher rates with power demand growing. Bobby at a makeup who manages PG IM Jennisons utility fund told me that over his more than two decades in the space, the fundamentals behind utilities have never been more positive. Utilities second best group today, Carl.