STUDNESS RESEARCH, INC. Information

Studness Research specializes in investment management and financial research of the electric power industry. We have managed electric utility portfolios for clients for 25 years. Our investment strategy seeks to take advantage of the attributes that make utility stocks unique and excellent investment vehicles. These include a combination of high yields, very low long-term risk, and long-term investor returns that are comparable to the S&P 500. Our utility portfolios have consistently outperformed the S&P 500 over the course of the last 25 years. Our research approach is both macro and micro. The macro analyses cover near-term cyclical issues and long-term secular developments. The cyclical analyses focus on the interaction between economic shocks and regulation with emphasis on the way financial consequences of the shocks are molded by the essential role of electricity in the economy. Our research reports also track the industry's economic and financial progress. Our secular analyses develop the implications for the industry of the expanding role that electricity will play in the U.S. energy economy in the future. Electricity is the key to addressing global warming and oil import problems through generating power with energy sources that produce zero or low CO2 emissions. Our micro analyses cover ratemaking problems and issues related to utility financial policies. These discussions range from issues in individual rate cases to the adverse effect that regulation has on utility innovation and thus the economic performance of the industry. Our consideration of utility financial policies delves into the failure of utility managements to give proper priority to shareholder interests.