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Nat Gas To Remain Low, Forecasts Xcel Energy CEO

* We've update this post with web exclusive video

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Utilities were once thought of a low growth sector, only attractive for their dividend yields. But not anymore!

Many utilities are getting investor attention these days as companies upgrade plants and move into renewables.

Xcel Energy is a good example – they’re moving from traditional coal to nat gas and wind energy. Take a look at their portfolio.

Xcel Energy 2009 Energy Portfolio
Based on electricity sales
Coal 50%
Natural gas 24%
Nuclear 12%
Renewables 14%:
(Biomass 1%, Wind 8% , Hydro 5%, Solar <1%)

In a live interview, Xcel CEO Richard Kelly tells Fast Money that wind is the area of renewables he'd like to grow - and he also plans to focus a great deal on nat gas – largely because he expects it to remain inexpensive.

”The price of natural gas has gone down substantially and we predict it to stay down so moving to nat gas is in the best interest of our customers,” says Kelly. “In the short term (I expect) it will trade around $4-5 and longer term it could trade to $6-7.”

What else did Kelly have to say that could impact your energy trades? After the broadcast we talked a little more. Check out what he told us in the web exclusive video below.







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Trader disclosure: On December 8, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova Owns (C), (GS), (NKE), (OXY), (PEP), (PFE), (VRTS), (UPL); Terranova Owns (GLD) puts; Adami owns (AGU), (BTU), (NUE), (C), (GS), INTC), (MSFT); Adami’s wife works at Merck; Finerman owns (AAPL); Finerman owns (BAC); Finerman & Finerman’s Firm owns (JPM); Finerman’s firm owns (MCD); Finerman & Finerman’s Firm owns (MSFT); Finerman’s firm owns (OCR); Finerman’s firm owns (TJX); Finerman’s firm owns (YUM); Finerman’s firm is short (IJR); Finerman’s firm is short (MDY); Finerman’s firm is short (SPY); Finerman’s firm is short (IWM); Finerman’s firm owns S&P 500 and Russell 2000 puts; Pete Najarian owns (C); Pete Najarian owns (MCD); Pete Najarian owns (MS); Pete Najarian owns (SMH); Pete Najarian owns (YHOO); Cortes Owns (TSN); Cortes Owns (TM); Cortes is short (XRT) vs. S&P 500; Cortes is short (LVS); Cortes is long USD vs. Mexican Peso; Cortes is short Corn; Cortes owns U.S. 2-Year and 30-Year Treasuries

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
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Virtus Investment Partners Owns More Than 1% Of (IGE)
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Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
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Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
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Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
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Virtus Investment Partners Owns More Than 1% Of (CLB)
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For Simon Baker
Baker Ave. owns (DOV)
Baker Ave. owns (ASF)

For Mike Khouw
Cantor Fitzgerald makes a market in (JPM)

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (DE) Call Spreads
Accounts Managed By Kanundrum Capital Own (DRYS) Calls
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Own (SPY) Put Spreads
Accounts Managed By Kanundrum Capital Own (GDXJ) straddles


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