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Securities and stock performance data for the Electric Utilities industry is given. Analysis by company is broken down by Graphs, revenue statistics, earnings per share, and yearly performance.

Electric utilities are taking divergent actions, such as expansion, contraction, and investment in nonelectric operations in order to meet the changing retail environment due to deregulation in a growing number of states. Management mind-sets, regulatory practices, financial strength, and company size are factors which determine which course each company takes. Investors need to evaluate individual stocks in this industry as the new environment is changing the industry's approach to doing business.

Electric utilities in the Middle West can no longer count on recovery of plant investments or a fair rate of return with deregulation and the onset of competition in the industry. All utilities, even those with low cost structures, will face stranded cost problems and this has become an issue in a number of states. These stocks have little investment appeal in 1998 due to their trading range and uncertainties in the industry.

Electric utility stocks have lost ground during the 2nd qtr of 1998, though valuations have increased due to lower interest rates, and weather in the Midwest has had an economic impact as well. Legislation has been adopted in a number of states restructuring electric utilities, and the industry should be deregulated within the next five years. These stocks are stable, although risky, investments in 1998.

A general plan for deregulation and competition in the electric utility industry was announced for congressional consideration by the Clinton administration in Mar 1998, although passage is not likely. Utilities, as a result, will need to find new revenue sources as growth will be slow and rate reduction is expected from state-level deregulation. Investors need to focus on companies with limited risk, low costs, and good finances.

Electric utility deregulation laws have been enacted in only a few states by late 1997, but restructuring legislation is expected to increase in many jurisdictions in 1998 and 1999. Tighter emissions standards and new taxes will impact the industry, and regular revenue streams cannot be ensured by future regular rate increases, as well. Investors should select only those stocks which are supported by solid financial and management structures.