FirstEnergy's Reward/Risk Brightens

 Regulated utilities continue to generate consistent profits and dividends, as seen in recent years by the likes of Duke Energy (DUK), Consolidated Edison (ED), Southern Company (SO) and American Electric Power (AEP). These shares have been Steady Eddies throughout the ups and downs of the economy and stock market.

On the other hand, the merchant utility operators have been on a wild ride throughout this period. An unusually weak economy has led to declining profitability of power contracts as volumes and prices have declined. Earnings subsequently pulled back in the face of these deteriorating fundamentals. A good example of this disappointment has been Exelon (EXC)....596 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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