Natural gas (distribution)

Gas delivery volume increased 3% for local distributors in 1995, largely due to demand from electric utilities and manufacturers. Earnings for the 4th qtr of 1995 will also improve with frigid weather in the colder US areas. A larger customer base will offset a lower allowable rate of return in the 11%-11.5% range, and gas marketing methods are changing. These stocks are defensive and investors should seek quality for dividend growth.