The more questions you have these days about the investment world, and the more concerned you are about economy over the next few years, the more you should have some of your assets in electric utilities. Regardless if our nation makes a push toward nuclear, solar, or wind power or does nothing at all, electric utilities will remain the big players. Year in and year out they have a stable customer base, pay a higher dividend yield and have a much higher level of predictability than almost any other investment class.

Another factor that is likely to contribute to the growth of electric utilities is the push toward electric "plug-in" cars. I have not done any analysis as to how this will affect global warming, the price of gas, the quality of air, or total national energy consumption, but those issues aside, if we change even 25% of the nation's automobiles to all-electric over the next ten years, that is a lot of growth.

Historically, the Dow Jones Utilities Average has beaten the pants off the Dow Jones Industrial Average for total return. There are short periods of time when the Industrials jump past the Utilities, but over the long haul, investors have done much better with what seems like the less attention-grabbing, boring old utilities. Choosing boring stocks remind you of anyone? Yes, "My Pal Warren" has been buying these boring stocks over the last decade (adding to his others in chocolate, underwear, ice cream and insurance) and you can see the results in the five-year chart comparing the two Dow indices.

Given the sorry state of affairs and great economic uncertainties that lie ahead, a good way to proceed is to put all of your local utilities on your watch list since you have some familiarity with them. On a down day, I might start building a position for the long term. I would also combine this view by looking for specific areas of growth.

The three areas I have keyed in on are the Southeastern United States, where population growth is likely to continue to outpace the rest of the nation; China, which will outpace everyone due to its great and growing need for energy fueled by its rapidly expanding economy; and lastly California, the state with the most cars combined with the most demanding (or progressive) regulations.

Here is a short watch-list including the recent P/E and yield:

• The Southeast: Duke Energy (NYSE: DUK) P/E 19.54, Yield 4.53% and Southern Power (NYSE: SO) P/E 17.55, Yield 4.35%
• China: Huaneng Power Intl. ADS (NYSE: HNP) P/E 14.30, Yield 3.49%
• California: PG&E Corp. (NYSE: PCG) P/E 17.15, Yield 3.24%

In addition, you can find Exchange Traded Funds (ETFs) that will allow you to invest in a large group of utilities offering greater diversification. ETFs trade like stocks, although trading is foolish to me. I would just build a position over time and hold it. One such ETF is the Vanguard Utilities ETF (VPU), currently paying a 2.72% yield.

It is clear that we keep inventing new products daily that require electric power and whole new industries as well; the billboard industry is being transformed and data centers are being built throughout the world, factories and even surgical wards are being automated. Wise investors will recognize the importance of electric utilities as a mainstay in any portfolio. These are just few suggestions to consider. If you look, you will find more.