First, markets usually fall in anticipation of a slowing economy, but, unless there's a long and deep recession, utilities don't suffer much. Consumers keep their air conditioners running, and businesses keep the lights on. Second, an economic slowdown often means lower interest rates, and utilities are huge borrowers, so a major expense of theirs is reduced and their profits rise. This new demand serves to boost prices. Again, more demand and higher prices.
Some utilities pay far more.
Southern Co., parent of utilities in Alabama, Georgia and Mississippi, yields 4.6 percent. But don't get too excited. Another concern is that utilities aren't necessarily the stable businesses they used to be. Deregulation is sweeping the country. Under new rules, consumers will be able to choose their electric company, the way they now choose their long-distance company.