Reason being is that CPFL Energia (CPL: 41.39, 0.00 (0.00%)) produces electricity almost 100% exclusively with clean, renewable hydro plants.  CPL, the largest utility in Brazil, has successfully taken advantage of a country flush with the natural infrastructure, building a river arsenal capable of powering 6.3 million customers with 1,275 megawatts of electricity.  In addition to its environmental friendliness, the company has a dividend policy in which is must pay out at least half of its net income on a semiannual basis.  Currently, the company has taken that a step further and has paid nearly 95% of its net income in the form of a dividend, giving it a yield of over 10%.

4.  Xcel Energy (XEL): Xcel Energy (XEL: 17.40, 0.00 (0.00%)), a Minnesota based electric utility serving over 3 million customers, is another pioneer in wind production that warrants significant praise.  The company’s current renewable portfolio consists of 2,700 megawatts of wind generation, 365 in hydro generation, and 17 megawatts in solar generation for a grand total of 3,072 megawatts of renewable production.  Under current company initiatives, Xcel Energy will grow their renewable base an impressive 173% to 8,400 megawatts, 7,400 of which will be in wind generation by 2020.  While the company does have substantial coal exposure, they have reduced their carbon output by 10 million tons over the past 4 years, proving that they have the environmental wherewithal to use a vital resource like coal effectively in this new green environment.  In addition to growing green, Xcel offers a comfortable 5.3% yield for those who wish to invest with the company and their green endeavors.

5.  National Grid (NGG): NGG (NGG: 55.60, 0.00 (0.00%)), based in England with operations in the Northeast United States, may not be the mean and green quite yet, but they are certainly on their way.  Currently, NGG is predominately coal,with a third of its 78 GW portfolio being made up of coal inputs.  However, through company mandated initiatives, NGG projects that by 2030 it will have a generation portfolio of approximately 110 GW. This would include with roughly 35 GW in wind, 15 GW in nuclear and only 10 GW in coal.  By 2030 the company projects that renewables will make up nearly 60% of their entire portfolio.  They should have very little trouble adapting to any new energy endeavors brought forward by President-elect Barack Obama.

-TJ Smith

Disclosure:  The mutual fund the author is associated with intends to be long FPL in the near future