Changing times

Electric Perspectives, Jul/Aug 1997

Last May, six changes were made to the 15-stock Dow Jones Utility Average in "one of the biggest reconfigurations of the average in its history," according to the Wall Street Journal.

Journal editors determine the stocks that make up the Dow Jones Averages, which include industrial and transportation averages as well.

The changes reflect national shifts in population and manufacturing. According to John A. Prestbo, Journal markets editor, "The original selection of utilities reflected the industrial dominance of the Northern and Midwestern states, while the electric utilities being added are all in the Sun Belt." (See Table 1, page 9.) He also noted the rise in the importance of gas as a source of energy.

Of the 15 companies on the list, the electric utility sector loses one spot to gas companies. But the 10 electric utilities on the list altogether serve 29 million customers, whereas the 11 before the change served 27 million.