Utilities for Growth
Time was when utility stocks were disparagingly called stocks for widows and orphans. Utility stocks were highly-regulated in their production and transmission of power to residential and commercial customers, Since this production and distribution is considered essential to the well-being of the country, the companies were run almost as quasi-governmental agencies. The regulations were such that utilities were strictly overseen by public utilities agencies, not only with regard to monitoring power transmission and supplies, but in their business practices like rate increases and other profit-making strategies. In return for this strict control, utilities had very little downside potential—they were not…