On yesterday's Mad Money, CNBC host Jim Cramer asked if it is "really safe to own a utility right now" given the interest-rate backdrop. The host expressed concern about holding even "well run" utilities, because of expectations that Janet Yellen, the chair of the Federal Reserve Board, will raise interest rates this month, and possibly many times through 2017. Business Insider reports that market participants see a 100 percent chance that rates will be hiked at next week's Fed Open Market Committee meeting.

Jim Cramer forecast that rate hikes will make alternatives to the bond market like high-yielding utility stocks "a lot less attractive." The host held up Avangrid, Inc. (NYSE: AGR) as an potential example.

The energy-services holding company currently pays annual dividends totaling $1.73, yielding 4.03 percent. AGR stock is up marginally in Thursday's trading, to $41.83, on thin volume. The former hedge fund manager explained that Avangrid was formed in a 2015-merger between Iberdrola USA, Inc and UIL Holdings Corporation. The new firm services 25 states, with a "focus" on New England.

AGR stock gains in 2017

AGR stock has gained more than 10 percent this year, and reported a $0.03 earnings per share beat in its most recent quarter, with revenue coming in below the Wall Street analyst consensus. Avangrid provided "slightly stronger than expected" profit guidance for the full 2017 fiscal year.

The host stated that "the thing" to be aware of about AGR stock is that its currently attractive yield near 4 percent will become less attractive as interest rates are hiked.

Jim Cramer also expressed concern about headwinds for AGR stock as a result of President Donald Trump's agenda that appears to favor fossil fuels. Avangrid is known for its exposure to wind electrical generation.

Cramer then welcomed Avangrid Chief Executive Officer James Torgerson onto his show. The interview began with the Mad Money host asking the CEO about a February press release detailing a partnership formed between Avangrid Renewables and Amazon.com, Inc.

(Nasdaq: AMZN) to provide wind farms. In response to Amazon's needs, Mr. Torgerson reported that Avangrid built a farm that is currently producing 208 megawatts "every day."

Avangrid CEO reiterates guidance

Noting comments from JPMorgan Chase & Co. (NYSE: JPM) with regard to challenging 2020 targets, Jim Cramer stated that renewables would appear to be a "good way to make power;" he also called the company's five-year plan "aggressive." CEO Torgerson stated that each contract the company enters to provide renewable energy includes "long-term" agreements.

Underlining this, the CEO reiterated the CNBC host's assertion that Avangrid is not merely "winging it," and that the firm doesn't sell "into the marketplace," giving more control managing price fluctuations, as well as volume.

Jim Cramer asked the Avangrid CEO about what effect the administration of President Trump will have on the firm. Torgerson replied that, because demand for renewable energy has been spurred at the state level of government, Avangrid hasn't seen much fallout from the Trump presidency. The CEO reiterated his view of the company being on track to achieve "8 to 10 percent earnings growth" over the coming five years, after Cramer asked about the possibility of a dividend hike, to keep pace with Fed rate increases.

Torgerson stated "we plan on raising the dividend in 2018."

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