Just as metal, oil, gold and other commodity producers rallied as a result of the surprise rate cut by the Federal Reserve, shares of utilities have rocketed higher as market participants come to terms with the reality of lower interest rates. Historically, rate-sensitive stocks like utilities have outperformed other stocks during periods of falling interest rates. This is because investors primarily value the shares of large utilities as income-providing securities. So when the yields on treasuries fall, as they are now, income investors can rely on utilities as alternative sources of dependable income.

Additionally, there are few better places to ride out the market volatility than in large, safe, steady utilities. This is because their revenue stream isn't affected by market turbulence, or even recessions for that matter. No matter where the markets are headed, light, heat and water all need to flow to customers. That's why utilities like South Jersey Industries (SJI) have recently found eager buyers.

South Jersey Industries has five subsidiaries that serve a fast-growing area of southern New Jersey, including the busy Atlantic City area where, of course, electricity demand is high. The company's two main holdings are South Jersey Gas Co., a regulated natural gas distribution utility that serves 330,000 customers, and non-regulated South Jersey Energy Solutions, which controls the South Jersey Energy Company, Marina Energy, South Jersey Energy Services Plus and Millennium Account Services. Through these subsidiaries, SJI not only distributes natural gas and electricity to its customers, it also offers home appliance servicing.

The company is fairly progressive for a utility. It is constantly on the lookout for innovative and efficient ways to better serve its customers -- which is especially important in a time when natural gas and oil prices are skyrocketing -- and to generate new revenue.

SJI has been actively bidding on projects to provide on-site electricity to resorts and casinos in Las Vegas and Atlantic City so that these establishments can cheaply generate their own power. SJI is has projects in solar power, as well as the generation of electricity from the methane gas created in landfills. The company recently announced a joint venture to build and operate a new, two-megawatt, methane-fueled power plant in New Jersey, and another project is due to start operating later this fall.

The company has a lot on its plate right now. If you add all of these projects to the fact that interest in utilities is skyrocketing, you get a recipe for success for SJI.