The Southern Company (NYSE:SO), TECO Energy (NYSE:TE), FirstEnergy (NYSE:FE) Top Utility Picks of FBR

The Southern Company (NYSE:SO), TECO Energy (NYSE:TE) and FirstEnergy (NYSE:FE) are the top utility companies in 2011, according to FBR, measuring their decision by the strongest outlook and probability of upward revisions.

FBR says, "As is usual at this time of year, fourth-quarter earnings will be greeted with a big yawn. Ears will perk up for 2011 guidance and the longer-term outlook for electric utilities. An upward revision in long-term earnings for some integrated names is finally possible due to the tick up in power prices that followed the third quarter. Regulated utilities will introduce their capital budgets, which we believe will remain robust with billions and billions in expenditures (our homage to Carl Sagan). Utilities that introduce long-term capital budgets, however, will face the conundrum of budgeting for upcoming EPA regulations. As we enter this earnings season, we have a positive bias for utilities that face a robust 2011 outlook and possible upward earnings revisions, including The Southern Company (SO)(Market Perform), TECO Energy, Inc. (TE)(Market Perform), and FirstEnergy Corp. (FE)(Market Perform). That said, TE and FE stocks may already be pricing in this more robust outlook. We are more cautious on Public Service Enterprise Group Incorporated or "PSEG" (NYSE:PEG)(Market Perform) because consensus expectations for 2011 still seem too high."

The Southern Company was trading at $38.50, up $0.05, or 0.13 percent, as of 12:46 PM EST. TECO Energy was trading at $18.25, up $0.09, or 0.52 percent. FirstEnergy was trading at $39.29, gaining $0.47, or 1.21 percent.