When is the best time to invest in electric utilities? Are they a good investment?

I'm considering buying stock in Xcel Energy, AEP, and some other utilties, but should I wait until fall when demand has decreased? Is it a good idea to invest in energy?

In general, utilities are defensive stocks. In other words, they tend to outperform the general stock market when the market falls. This is because people will always have a healthy demand for electricity, even during recessions.

Timing a market fall is very difficult, and only a few select people have ever done so sucessfully (none of whom are on yahoo answers).

Also, waiting until autumn solely because demand for elecricity will decrease is not very logical... many people know that utilities have very seasonal demand, so that is priced into these stocks for years and years to come.

As for energy stocks in general, a big catalyst for the sector ouperformance has obviously been oil prices, which have been much less volatile in the past 6 months and don't appear to be retreating.

Trying to call the future direction of any commodity is just asking for trouble, but maybe $100/barrel and $5/gal gas would finally get some people to wake up and start consuming less oil... but probably not.

About this time next year would be an excellent time to " short " electric utilities . On July 10 , 2008 Better World Technologies will finally demonstrate their " Free Energy " program in 100 US and 20 Canadian football fields simultaniously . . Report It

In the meantime they have introduced the Hydro Assist Fuel Cell that will double fuel MPG . They guarantee a 50% or money back . Report It

Later toward year end they'll introduce the Pre Ignition Catalytic Converter that will improve fuel economy by 5 to 10 times
These technologies will upset the status quo big time Report It

These technologies will save the V-8 engine and SUVs from extinction . Safer than riding in tin cans imported from China . Report It

The best way to invest in utilities is through UTF - monthly dividends, discount to NAV. Put it on DRIP and leave it alone - let the dividends and the market do the rest.