Utility Taps Bush Bigwigs

By James Kwak Recently, a lot of the political debate has been about whether private equity—and by extension Mitt Romney—is good or bad. The argument on one side is that private equity firms are vultures who destroy firms to make money; on the other, that private equity is just capitalism at work, creates value, and creates jobs.

By Kevin Mulhern: The recent release of new EPA standards on mercury emissions from coal-fired power plants were met with a counterintuitive day of strong outperformance in utility stocks.

Investor relations used to be an exercise in minimalism at hedge funds and private equity, but with investors like pension funds which have fiduciary obligations, reporting has become more informative. Gathering all the data across assets is a challenge.

By Kate Sheppard The Obama administration has faced harsh criticism for its oversight of offshore oil and gas development in the wake of the Deepwater Horizon disaster. The most absurd commentary, of course, comes from Republicans who have consistently pushed back against any attempts to regulate industry for years. The administration has been fighting back, but no one wants to actually call the problem by its name: the Bush administration.

George Fisher submits: Energy Inc (EGAS) is a small-cap regulated Montana-based natural gas utility that is on the move. One of the few roll-ups in the local gas utility business, EGAS offers investors adequate dividend yield and interesting growth prospects at reasonable current valuations. EGAS serves clients in Montana, Wyoming, North Carolina, Maine, Ohio, and Pennsylvania. In addition, EGAS owns working interest in 140 natural gas wells in Wyoming along with a local gathering and transfer pipeline.Energy Inc.

George Fisher submits: PowerShares S&P SmallCap Utilities ETF (XLUS $28) offers investors an interesting combination of yield and potential growth. Launched last April by INVESCO, XLUS replicates the S&P SmallCap Utility Index, a sub-sector of the venerable S&P Utility Index. SPDR Utility ETF (XLU - $31) replicates the much larger Index.

Brad Case submits:A report issued today by Preqin, which collects data on private equity investing, details what it calls "real problems" in the private equity approach to real estate investment.

Florida regulators to Florida utilities: "Say good-bye to reliable returns that ensure a low cost of capital." Florida utilities to Florida regulators: "Fine, but don’t expect any new investment."