Electric utility (west) industry

The electric utility industry's performance in the US' western region will have improved prospects, although investments in this industry are riskier than they were a few years earlier. The industry is expected to have an increase of consolidation activity. Additionally, California utilities could be hurt if the California Public Utilities Commission decides to allow some customers to purchase energy from a non-utility supplier, which would increase competition and lower energy prices. The industry's stock prices may be ready for an upturn, but further interest rate increases or a resumption of competitive pressure could depress returns.