Long Term Perspective

The Dow Utilities Average jumped 21 percent in 2005 - not faster than 2004's healthy 24 percent gain, but a very strong showing compared with other market sectors. At 405, the index level stood at its highest year-end level since 2000. The 10-year average growth in the Utilities average remained nearly unchanged at 8.6 percent.

Short Term Perspective

The 15 utilities included in this index are: AES Corp., AEP, Centerpoint Energy, Consolidated Edison, Dominion Resources, Duke Energy, Edison International, Exelon Corp., FirstEnergy Corp., NiSource Inc., PG&E, Public Service Enterprise, Southern Co., TXU Corp., and Williams Cos.

The Dow Jones Utility index did not show the same pattern of activity as the Industrial index, but was more in line with the Transportation index, which was posting healthy yearly gains in the past two years. In November, the Utility index was 13.9 percent higher than a year ago. In October, the index was up 11.8 percent. The Utility index is up 12.5 percent from December 31, 2005.

After declining in September, the Utilities index resumed its climb. It was up 4.6 percent in October and a more modest 1.7 percent in November.