Trends I'm Watching

Best Performing ETFs for the Past Week (2008-06-27)

Trend: UltraShort Financials ProShares (SKF) led the one week performance (+12%, +36% for 4 weeks, +31 for 13 weeks).  UltraShort Industrials ProShares (SIJ) and Market Vectors Gold Miners ETF (GDX) were the second and third best performers, respectively.

The 20 ETFs with the best 1 week performance through 6/27/2008 tracked by Morningstar are highlighted below.

Source: MSN Money Exchange Traded Funds (ETFs) Performance Tracker

Name	Ticker	Category	Holdings	Morningstar	Last Price*	1-Wk	4-Wks	13-Wks	YTD	52-Wks	3-Yrs	5-Yrs
UltraShort Financials ProShares	SKF	Specialty - Financial	holdings		$150.73	12.48	35.87	31.12	51.20	110.16	N/A	N/A
UltraShort Industrials ProShares	SIJ	Money Mkt - General	holdings		$67.90	11.04	19.67	10.53	20.89	22.75	N/A	N/A
Market Vectors Gold Miners ETF	GDX	Specialty - Precious Metals	holdings		$48.29	10.56	4.37	-1.80	5.76	31.71	N/A	N/A
UltraShort Russell2000 Value ProShares	SJH	Growth	holdings		$98.27	8.77	12.97	2.64	10.16	43.56	N/A	N/A
UltraShort Real Estate ProShares	SRS	Specialty - Real Estate	holdings		$104.90	8.28	20.95	5.84	-5.60	17.17	N/A	N/A
Rydex Inverse 2x Russell 2000	RRZ	Growth	holdings		$86.73	8.22	9.27	-3.80	13.00	N/A	N/A	N/A
UltraShort Dow30 ProShares	DXD	Growth	holdings		$64.55	8.18	19.97	14.61	28.82	32.07	N/A	N/A
UltraShort SmallCap600 ProShares	SDD	Equity-Income	holdings		$74.89	8.14	9.47	-3.74	7.47	26.58	N/A	N/A
UltraShort Telecommunications ProShares	TLL	Specialty - Communications	holdings		$67.61	8.09	22.93	N/A	N/A	N/A	N/A	N/A
Rydex Inverse 2x S&P MidCap 400	RMS	Growth	holdings		$80.25	7.83	9.08	-9.98	4.48	N/A	N/A	N/A
UltraShort MidCap400 ProShares	MZZ	Growth	holdings		$55.93	7.58	9.72	-11.77	2.45	12.49	N/A	N/A
UltraShort Russell MidCap Val ProShares	SJL	Income	holdings		$93.35	7.45	16.58	-0.70	14.31	39.71	N/A	N/A
UltraShort QQQ ProShares	QID	Growth	holdings		$43.86	7.37	12.88	-11.20	16.48	-0.81	N/A	N/A
UltraShort Semiconductor ProShares	SSG	Specialty - Technology	holdings		$65.70	7.37	17.58	-13.13	16.76	22.65	N/A	N/A
UltraShort Russell2000 ProShares	TWM	Equity-Income	holdings		$76.94	7.12	8.50	-4.82	9.96	26.99	N/A	N/A
UltraShort Consumer Services ProShares	SCC	Specialty - Unaligned	holdings		$100.51	7.02	16.34	7.33	17.66	52.89	N/A	N/A
DB Commodity Double Long ETN	DYY	Specialty - Natural Resources			$33.66	6.79	21.65	N/A	N/A	N/A	N/A	N/A
UltraShort Consumer Goods ProShares	SZK	Specialty - Unaligned	holdings		$82.31	6.59	17.94	19.22	30.78	26.74	N/A	N/A
UltraShort Technology ProShares	REW	Specialty - Technology	holdings		$63.30	6.37	12.47	-11.68	17.93	7.00	N/A	N/A
DB Gold Double Long ETN	DGP	Specialty - Precious Metals			$22.97	6.20	5.03	-5.51	N/A	N/A	N/A	N/A

Disclosure: We may own any EFT above at any time.

Please verify the performance of any ETF before investing.

Will energy-conserving neighborhoods attract suburbanites?

Trend: Energy-efficient neighborhoods could reduce demand for traditional homes in the suburbs.

New Urbanism is one example of neighborhood planning that seek to reduce suburban sprawl and reduce the need for driving. Below are 13 elements of New Urbanism.

Link: New Urbanism - Wikipedia, the free encyclopedia.

1. The neighborhood has a discernible center. This is often a square or a green and sometimes a busy or memorable street corner. A transit stop would be located at this center.
2. Most of the dwellings are within a five-minute walk of the center, an average of roughly 1/4 mile or 1,320 feet (0.4 km).
3. There are a variety of dwelling types — usually houses, rowhouses, and apartments — so that younger and older people, singles, and families, the poor, and the wealthy may find places to live.
4. At the edge of the neighborhood, there are shops and offices of sufficiently varied types to supply the weekly needs of a household.
5. A small ancillary building or garage apartment is permitted within the backyard of each house. It may be used as a rental unit or place to work (for example, an office or craft workshop).
6. An elementary school is close enough so that most children can walk from their home.
7. There are small playgrounds accessible to every dwelling — not more than a tenth of a mile away.
8. Streets within the neighborhood form a connected network, which disperses traffic by providing a variety of pedestrian and vehicular routes to any destination.
9. The streets are relatively narrow and shaded by rows of trees. This slows traffic, creating an environment suitable for pedestrians and bicycles.
10. Buildings in the neighborhood center are placed close to the street, creating a well-defined outdoor room.
11. Parking lots and garage doors rarely front the street. Parking is relegated to the rear of buildings, usually accessed by alleys.
12. Certain prominent sites at the termination of street vistas or in the neighborhood center are reserved for civic buildings. These provide sites for community meetings, education, and religious or cultural activities.
13. The neighborhood is organized to be self-governing. A formal association debates and decides matters of maintenance, security, and physical change. Taxation is the responsibility of the larger community.

Best Performing ETFs for the Past Week (2008-06-20)

Trend: UltraShort Financials ProShares (SKF) led the one week performance (+9%, +26% for 4 weeks, +25 for 13 weeks). UltraShort Consumer Services ProShares (SCC) and DB Gold Double Long ETN (DGP) were the second and third best performers, respectively.

The 20 ETFs with the best 1 week performance through 6/20/2008 tracked by Morningstar are highlighted below.

Source: MSN Money Exchange Traded Funds (ETFs) Performance Tracker

Name	Ticker	Category	Holdings	Morningstar	Last Price*	1-Wk	4-Wks	13-Wks	YTD	52-Wks	3-Yrs	5-Yrs
UltraShort Financials ProShares	SKF	Specialty - Financial	holdings		$134.03	9.11	26.17	25.87	34.42	92.57	N/A	N/A
UltraShort Consumer Services ProShares	SCC	Specialty - Unaligned	holdings		$93.76	8.85	11.75	0.38	9.94	46.92	N/A	N/A
DB Gold Double Long ETN	DGP	Specialty - Precious Metals			$21.63	7.50	-4.08	-3.61	N/A	N/A	N/A	N/A
UltraShort Dow30 ProShares	DXD	Growth	holdings		$59.52	7.30	16.34	1.73	19.08	23.33	N/A	N/A
UltraShort Russell1000 Value ProShares	SJF	Growth	holdings		$92.27	7.10	18.72	6.09	21.39	48.04	N/A	N/A
E-TRACS UBS Bloomberg CMCI Livestock ETN	UBC	Specialty - Natural Resources			$29.30	7.00	8.52	N/A	N/A	N/A	N/A	N/A
iPath DJ AIG Copper TR Sub-Idx ETN	JJC	Specialty - Precious Metals			$54.45	6.81	1.80	8.81	26.39	N/A	N/A	N/A
UltraShort Consumer Goods ProShares	SZK	Specialty - Unaligned	holdings		$77.22	6.75	12.05	10.33	22.70	18.71	N/A	N/A
UltraShort Real Estate ProShares	SRS	Specialty - Real Estate	holdings		$96.19	6.53	16.75	-0.01	-12.81	9.20	N/A	N/A
Rydex Inverse 2x S&P 500	RSW	Growth	holdings		$91.93	6.02	14.31	-0.21	18.41	N/A	N/A	N/A
UltraShort MSCI Emerging Mrkts ProShares	EEV	Income	holdings		$75.82	6.00	21.76	-17.84	4.01	N/A	N/A	N/A
UltraShort MSCI Japan Proshares	EWV	Income	holdings		$78.91	5.76	13.26	-13.51	3.90	N/A	N/A	N/A
UltraShort S&P500 ProShares	SDS	Growth	holdings		$63.37	5.60	14.68	-5.05	17.40	24.78	N/A	N/A
PowerShares DB Silver	DBS	Specialty - Precious Metals	holdings		$32.10	5.59	-1.95	3.88	15.52	26.89	N/A	N/A
PowerShares DB Base Metals	DBB	Specialty - Natural Resources	holdings		$25.04	5.39	-1.42	5.70	14.34	-3.04	N/A	N/A
UltraShort Technology ProShares	REW	Specialty - Technology	holdings		$59.51	5.38	6.08	-18.97	10.87	0.40	N/A	N/A
UltraShort Telecommunications ProShares	TLL	Specialty - Communications	holdings		$62.55	5.34	13.73	N/A	N/A	N/A	N/A	N/A
iShares Silver Trust	SLV	Specialty - Precious Metals	holdings		$171.96	5.30	-1.73	2.97	17.01	31.46	N/A	N/A
iPath DJ AIG Ind Metals TR Sub-Idx ETN	JJM	Specialty - Precious Metals			$50.25	4.71	-1.10	1.74	14.49	N/A	N/A	N/A
UltraShort MSCI EAFE ProShares	EFU	Income	holdings		$87.36	4.70	19.43	-7.58	18.31	N/A	N/A	N/A

Disclosure: We may own any EFT above at any time.

Please verify the performance of any ETF before investing.

Electrifying America’s Cars

Trend: Entrepreneurs are rolling out innovative strategies for breaking the oil addiction.

From Earth2Tech, Shai Agassi explains why the U.S. is a good fit for electric car battery swapping and charging stations.

Link: Shai Agassi on How to Electrify America’s Cars « Earth2Tech.

Agassi contends that the clustered populations on the west and east coasts make it easy for the company to effectively deploy battery swapping and charging stations. He also says that because so many Americans have second cars, there is basically “a range-extension mechanism built into the country.” That one long road trip outside of the electric vehicle’s range can be done by that second regular vehicle.

Best Performing ETFs for the Past Week (2008-06-13)

Trend: DB Agriculture Double Long ETN (DAG) led the one week performance (+14%, +20% for 4 weeks, n/a for 13 weeks). E-TRACS UBS Bloomberg CMCI Agric ETN (UAG) and ELEMENTS MLCX Grains Index TR ETN (GRU) were the second and third best performers, respectively.

The 20 ETFs with the best 1 week performance through 6/13/2008 tracked by Morningstar are highlighted below.

Source: MSN Money Exchange Traded Funds (ETFs) Performance Tracker

Name

Ticker

Category

Holdings

Morningstar

Last Price*

1-Wk

4-Wks

13-Wks

YTD

52-Wks

3-Yrs

5-Yrs

DB Agriculture Double Long ETN

DAG

Specialty - Natural Resources

$26.77

14.01

19.88

N/A

N/A

N/A

N/A

N/A

E-TRACS UBS Bloomberg CMCI Agric ETN

UAG

Specialty - Natural Resources

$27.84

12.62

8.62

N/A

N/A

N/A

N/A

N/A

ELEMENTS MLCX Grains Index TR ETN

GRU

Specialty - Natural Resources

$10.82

9.96

16.85

-2.87

N/A

N/A

N/A

N/A

iPath DJ AIG Grains TR Sub-Idx ETN

JJG

Specialty - Natural Resources

$72.32

8.99

14.99

2.90

25.77

N/A

N/A

N/A

UltraShort Telecommunications ProShares

TLL

Specialty - Communications

holdings

$59.38

8.83

-2.88

N/A

N/A

N/A

N/A

N/A

iPath DJ AIG Nickel TR Sub-Idx ETN

JJN

Specialty - Precious Metals

$37.50

8.73

-11.12

-25.68

-8.87

N/A

N/A

N/A

PowerShares DB Agriculture

DBA

Specialty - Natural Resources

holdings

$40.58

7.78

10.60

-4.52

23.01

50.79

N/A

N/A

United States 12 Month Oil

USL

Specialty - Natural Resources

holdings

$81.22

7.50

12.51

33.37

50.33

N/A

N/A

N/A

DB Gold Double Short ETN

DZZ

Specialty - Precious Metals

$30.37

7.48

-0.59

30.68

N/A

N/A

N/A

N/A

ELEMENTS MLCX Biofuels Index TR ETN

FUE

Specialty - Natural Resources

$11.30

7.38

10.10

3.54

N/A

N/A

N/A

N/A

iPath DJ AIG Agriculture TR Sub-Idx ETN

JJA

Specialty - Natural Resources

$65.91

7.28

9.76

-3.57

17.03

N/A

N/A

N/A

ELEMENTS Rogers Intl Commodity Agric ETN

RJA

Specialty - Natural Resources

$12.07

6.06

7.00

-6.43

10.43

N/A

N/A

N/A

Opta Lehman Cmdty Pure Beta Agric TR ETN

EOH

Specialty - Natural Resources

$53.00

6.00

10.46

3.70

N/A

N/A

N/A

N/A

UltraShort MSCI Japan Proshares

EWV

Income

holdings

$74.61

5.62

2.24

-12.39

-1.76

N/A

N/A

N/A

Market Vectors Double Short Euro ETN

DRR

Income

$40.76

5.32

1.19

N/A

N/A

N/A

N/A

N/A

UltraShort MSCI Emerging Mrkts ProShares

EEV

Income

holdings

$71.53

5.27

9.93

-12.84

-1.88

N/A

N/A

N/A

UltraShort MSCI EAFE ProShares

EFU

Income

holdings

$83.44

5.21

10.56

-3.92

13.00

N/A

N/A

N/A

UltraShort Lehman 7-10 Yr Trsy ProShares

PST

Government Bond - Treasury

holdings

$74.00

4.95

4.59

N/A

N/A

N/A

N/A

N/A

E-TRACS UBS Bloomberg CMCI Food ETN

FUD

Specialty - Unaligned

$28.04

4.82

7.76

N/A

N/A

N/A

N/A

N/A

UltraShort Lehman 20+ Trsy ProShares

TBT

Government Bond - Treasury

holdings

$74.51

4.80

4.88

N/A

N/A

N/A

N/A

N/A

Disclosure: We may own any EFT above at any time.

Please verify the performance of any ETF before investing.

Utility Plans Rooftop Solar Panel Program

Trend: Duke Energy plans to install 16 megawatts of rooftop solar in North Carolina to evaluate distributed generation and gain experience in owning and operating renewable energy resources.

Clean Edge News describes Duke Energy's plan. Excerpts below.

This is a radical change of course for a utility. Electric utilities rely upon centralized electricity generation operations. If this program is successful and becomes widespread, sales of rooftop solar panels would boom.

Link: News - Clean Edge - The Clean-Tech Market Authority.

Duke Energy Carolinas is proposing a $100 million plan to install electricity generating solar panels at up to 850 North Carolina sites including homes, schools, stores and factories.

...the company filed an application with the North Carolina Utilities Commission asking for approval to implement this solar distributed generation program. Distributed generation is energy created close to where it is used, rather than being produced in large power plants and transported to customers over power lines.

If the program is approved by regulators, Duke Energy Carolinas would spend two years installing approximately 20 megawatts of distributed solar generation on rooftops of customer businesses and homes or on ground sites within the company's North Carolina service area.

Solar power has to be converted from direct to alternating current. Once that's done, Duke Energy Carolinas customers will benefit from more than 16 megawatts of power, enough energy to serve more than 2,600 homes.

Duke Energy Carolinas would own and operate the equipment and the power produced by each installation would be used to serve the utility's customers. Customers who agree to place solar panels at their location would be rewarded based on the size of the installation and the amount of energy it produces.

The company plans to recover its $100 million investment through North Carolina's new REPS cost recovery mechanism. The company estimates that, over its life, the program will increase the average customer's bill by no more than 25 cents a month. The average customer uses about 1000 kilowatt-hours of electricity each month.

Understating Inflation in the U.S.

Trend: The low CPI in the U.S. is distorting economic reality for investors.

Bill Gross at PIMCO dishes out some tough medicine for the U.S. Excerpts below.

Link: PIMCO - IO June 2008.

The correct measure of inflation matters in a number of areas, not the least of which are social security payments and wage bargaining adjustments. There is no doubt that an artificially low number favors government and corporations as opposed to ordinary citizens. But the number is also critical in any estimation of bond yields, stock prices, and commercial real estate cap rates. If core inflation were really 3% instead of 2%, then nominal bond yields might logically be 1% higher than they are today, because bond investors would require more compensation. And although the Gordon model for the valuation of stocks and real estate would stress “real” as opposed to nominal inflation additive yields, today’s acceptance of an artificially low CPI in the calculation of nominal bond yields in effect means that real yields – including TIPS – are 1% lower than believed. If real yields move higher to compensate, with a constant equity risk premium, then U.S. P/E ratios would move lower. A readjustment of investor mentality in the valuation of all three of these investment categories – bonds, stocks, and real estate – would mean a downward adjustment of price of maybe 5% in bonds and perhaps 10% or more in U.S. stocks and commercial real estate.

A skeptic would wonder whether the U.S. asset-based economy can afford an appropriate repricing or the BLS was ever willing to entertain serious argument on the validity of CPI changes that differed from the rest of the world during the heyday of market-based capitalism beginning in the early 1980s. It perhaps was better to be “entertained” with the notion of artificially low inflation than to be seriously “informed.” But just as many in the global economy are refusing to mimic the American-style fixation with superficialities in favor of hard work and legitimate disclosure, investors might suddenly awake to the notion that U.S. inflation should be and in fact is closer to worldwide levels than previously thought. Foreign holders of trillions of dollars of U.S. assets are increasingly becoming price makers not price takers and in this case the price may not be right. Hmmmmm?

What are the investment ramifications? With global headline inflation now at 7% there is a need for new global investment solutions, a role that PIMCO is more than willing (and able) to provide. In this role we would suggest: 1) Treasury bonds are obviously not to be favored because of their negative (unreal) real yields. 2) U.S. TIPS, while affording headline CPI protection, risk the delusion of an artificially low inflation number as well. 3) On the other hand, commodity-based assets as well as foreign equities whose P/Es are better grounded with local CPI and nominal bond yield comparisons should be excellent candidates. 4) These assets should in turn be denominated in currencies that demonstrate authentic real growth and inflation rates, that while high, at least are credible. 5) Developing, BRIC-like economies are obvious choices for investment dollars.

Investment success depends on an ability to anticipate the herd, ride with it for a substantial period of time, and then begin to reorient portfolios for a changing world. Today’s world, including its inflation rate, is changing. Being fooled some of the time is no sin, but being fooled all of the time is intolerable.

Best Performing ETFs for the Past Week (2008-06-06)

Trend: DB Agriculture Double Long ETN (DAG) led the one week performance (+11%, +5% for 4 weeks, n/a for 13 weeks). iPath DJ AIG Energy TR Sub-Idx ETN (JJE) and UltraShort MSCI Emerging Mrkts ProShares (EEV) were the second and third best performers, respectively.

The 20 ETFs with the best 1 week performance through 6/6/2008 tracked by Morningstar are highlighted below.

Source: MSN Money Exchange Traded Funds (ETFs) Performance Tracker

Name	Ticker	Category	Holdings	Morningstar	Last Price*	1-Wk	4-Wks	13-Wks	YTD	52-Wks	3-Yrs	5-Yrs
DB Agriculture Double Long ETN	DAG	Specialty - Natural Resources			$23.48	11.17	5.24	N/A	N/A	N/A	N/A	N/A
iPath DJ AIG Energy TR Sub-Idx ETN	JJE	Specialty - Natural Resources			$81.89	8.14	14.09	32.55	52.81	N/A	N/A	N/A
UltraShort MSCI Emerging Mrkts ProShares	EEV	Income	holdings		$67.95	8.13	6.71	-19.86	-6.78	N/A	N/A	N/A
United States Natural Gas	UNG	Specialty - Natural Resources	holdings		$60.10	8.04	13.40	26.26	65.79	13.61	N/A	N/A
iPath DJ AIG Natural Gas TR Sub-Idx ETN	GAZ	Specialty - Natural Resources			$78.21	7.86	13.10	27.01	64.65	N/A	N/A	N/A
iPath DJ AIG Grains TR Sub-Idx ETN	JJG	Specialty - Natural Resources			$66.35	7.71	8.40	-4.09	15.39	N/A	N/A	N/A
ELEMENTS MLCX Grains Index TR ETN	GRU	Specialty - Natural Resources			$9.84	7.42	5.02	-6.37	N/A	N/A	N/A	N/A
UltraShort Industrials ProShares	SIJ	Money Mkt - General	holdings		$58.14	7.21	5.23	-12.40	3.52	3.96	N/A	N/A
iShares S&P GSCI Commodity-Indexed Trust	GSG	Specialty - Natural Resources	holdings		$72.68	7.04	10.46	20.93	37.81	72.92	N/A	N/A
iPath S&P GSCI Total Return Index ETN	GSP	Specialty - Natural Resources			$73.75	7.01	11.00	21.82	38.71	74.35	N/A	N/A
GS Connect S&P GSCI Enh Commodity TR ETN	GSC	Specialty - Natural Resources			$88.08	6.93	11.41	22.05	38.91	N/A	N/A	N/A
UltraShort Russell1000 Value ProShares	SJF	Growth	holdings		$85.49	6.72	11.84	-8.43	12.49	36.88	N/A	N/A
PowerShares DB Oil	DBO	Specialty - Natural Resources	holdings		$50.55	6.65	12.03	31.64	45.64	97.30	N/A	N/A
PowerShares DB Agriculture	DBA	Specialty - Natural Resources	holdings		$37.65	6.51	2.62	-9.15	14.13	46.17	N/A	N/A
PowerShares DB Energy	DBE	Specialty - Natural Resources	holdings		$52.74	6.35	14.85	33.32	49.41	89.62	N/A	N/A
Opta Lehman Commodity Pure Beta TR ETN	RAW	Specialty - Natural Resources			$62.47	6.33	10.13	18.11	N/A	N/A	N/A	N/A
UltraShort MSCI EAFE ProShares	EFU	Income	holdings		$79.30	6.15	7.36	-11.70	7.40	N/A	N/A	N/A
UltraShort Dow30 ProShares	DXD	Growth	holdings		$56.25	6.09	12.68	-5.47	12.56	15.85	N/A	N/A
UltraShort S&P500 ProShares	SDS	Growth	holdings		$59.80	5.78	8.51	-10.56	10.80	18.02	N/A	N/A
Ultra Semiconductor ProShares	USD	Specialty - Technology	holdings		$57.88	5.69	10.48	32.56	-12.44	-16.33	N/A	N/A

Disclosure: We may own any EFT above at any time.

Please verify the performance of any ETF before investing.

Nationalizing Oil Resources Boosts the Effects of Peak Oil

Trend: Oil producing countries like Venezuela and Russia that monopolize oil production (resource nationalism) reduce the amount of oil available in the marketplace, which drives prices up.

Reuters describes another force underlying the rise of energy prices. Excerpts below.

Link: U.S. has few options as oil nations tighten grip | Special Coverage | Reuters.

Resource nationalism in oil producing countries is cordoning off valuable supplies and the United States has precious few options to battle the trend amid a looming supply crunch.

The United States -- the world's biggest oil consumer -- stands mostly powerless as national oil companies like Venezuela's PDVSA and Russia's Gazprom block access to key oil reserves and demand a larger share of the profits in exchange for allowing international oil companies to drill.

"There are few good foreign policy options because oil really is our economic jugular," said Anne Korin, co-director of the Institute for the Analysis of Global Security, a nonprofit energy think tank.

Conventional wisdom in past years has been that when oil prices rise high enough, oil companies will have the profit motive to spend the billions of dollars needed to bring new supply sources online.

But resource nationalism has turned such wisdom on its head, investment bank Goldman Sachs said in a recent report.

Resource nationalism "imposes significant policy constraints on the free flow of capital, labor and technology that are substantially limiting supply growth," Goldman Sachs said in its report, which also called for benchmark U.S. oil prices to average $141 a barrel in the second half of 2008.

Solar Energy Gains Momentum

Trend: Incremental improvements in solar energy technology and problems with competing dirty sources of energy increase the likelihood of solar becoming cost competitive soon.

Jim Jubak at MSN Money makes the case for solar energy, as petroleum prices stay high and coal and nuclear plants are cancelled.

Link: High-powered solar stocks - MSN Money.

Solar now looks like it will become cost-competitive in the Southwest before 2013. Consider:

• The spot price of oil (West Texas Intermediate grade) climbed to $131 a barrel on May 29 from $80 on Oct. 1, when the Jefferies report was published. That's a 64% increase. Oil isn't used much to generate electrical power -- some is burned in diesel generators -- but it does set the price for other forms of energy.

• The Henry Hub price of natural gas -- which is burned to produce electricity -- climbed 49% from October to May.

• Between 2000 and 2006, U.S. utilities proposed 150 coal-fired power plants. By the end of 2007, utilities had built 10 of those, 25 were under construction, and a whopping 59 had been canceled or delayed due to everything from increased regulatory scrutiny to worries that global-warming regulations that were no more than a gleam in the eyes of some members of Congress would slap new costs on coal-burning plants. The problem got worse with the January 2008 cancellation of the federal FutureGen clean-coal pilot plant. The utility industry projects it will take 15 years to get this technology from a pilot plant to a commercial plant, and the clock isn't yet ticking. Every coal-fired plant put on hold increases the need for substitute generating capacity. That will keep natural-gas prices dancing upward and make electricity more expensive.

• Electricity prices per kilowatt-hour for residential customers climbed 3% from October to May for the U.S. as a whole. In the Pacific region, the likely market for power generated from solar installations in the Southwest, the price of electricity climbed about 9%.

• Hundreds of nuclear reactors are in the pipeline around the world, and about 30 are actually under construction, but it's taking longer and costing more than expected to build them. Finland's Olkiluoto 3 reactor, the first of a new generation of European pressurized-water reactors from French company Areva (ARVCF), was supposed to start producing electricity in 2009. The project is about two years behind schedule, however. Areva and its client, Finnish utility TVO, are arguing over $2.4 billion in cost overruns.