To better understand the performance of the electric utility sector from both a short-term and long-term perspective, we examined the total shareholder return (TSR)—dividends plus change in stock price—of 58 electric companies for 2005 and for three- and five-year periods. We grouped these companies into four categories to better understand the impact of alternative strategies on investor performance: Recovering, Traditionalist, Growth, and Merger.

Utility executives face volatile energy markets, skyrocketing fuel prices, and changing federal energy policies. How are utilities benefiting from the turnaround in energy trading?

(February 2006) Mirant announced that Robert M. Edgell would be appointed executive vice president and U.S. region head. The Southern California Edison board of directors elected James T. Reilly vice president of nuclear engineering and technical services for the San Onofre Nuclear Generating Station. KeySpan Corp.’s board of directors appointed Stephen W. McKessy lead director. Richard C. (Dick) Kelly was elected chairman of Xcel Energy Inc.’s board of directors. And others...

With compliance costs estimated at $50 billion to $60 billion during the next 15 years, the Clean Air Interstate Rule (CAIR) affects just about every market participant in the electric power industry.

(September 2005) Top honors in our first annual financial ranking go to those staying with the basics and to those dealing with soaring commodity prices.

Federal loan guarantees and other incentives can clear the hurdles to near-term deployment of gasification technologies.

Business & Money

Sticking to the Knitting:

A review of three years of post-Enron stock performance by electric utilities.

Immediately following the Enron collapse, investors dumped the stock of any electric power company that appeared to be pursuing non-traditional growth strategies. Any company that emphasized unregulated businesses-investments in overseas assets, merchant power plant development, and energy marketing and trading-was suspect.

New Opportunities: Dynegy Inc. announced that Carolyn M. Campbell has been named group general counsel-corporate finance & securities, and corporate secretary. Campbell joins Dynegy from Akin Gump Strauss Hauer & Feld LLP.