Regulation wins. (Analyst Showcase).

Buyside, April, 2003 by Chensvold, Christian M.

PAUL FREMONT

JEFFERIES & CO.

A DIE-HARD CAPITALIST WOULD SAY THAT regulation is a terrible thing. But others, like utilities investors, would call it a trusted comrade.

Paul Fremont of Jefferies & Co. has a fascination with the intermingling of business and politics. That's why he became a utilities analyst. Today Fremont, who previously worked at Moody's and in commercial banking, finds that companies operating in regulated markets are in the best position to do well.

Power costs vary widely from state to state. States in which power costs are high, like California, Texas, Illinois and those in the Northeast, have deregulated in the hopes of driving power prices down. It didn't work. Competitive markets, Fremont says, "run a...

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