Monday, September 14^th, 2026

IRAN War Fallout Keeps U.S. Inflation “HOT”!!!

The August (2026) reports for the final-demand PRODUCER PRICE INDEX (PPI-FD) and CONSUMER PRICE INDEX (CPI) make it “CLEAR” that the current INFLATION episode brought on by the attack on IRAN on February 28^th, 2026 is far from over.

As the war drags on with little sign of resolution, ENERGY PRICES remain VOLATILE and ELEVATED. The pass-through of COSTS TO BUSINESSES and CONSUMERS is keeping index readings elevated compared to last year (2025) and well above the FED’s 2 percent INFLATION TARGET.

In particular, prices for DIESEL FUEL essential for transportation of goods are at an “ALL-TIME” HIGH!!!

Businesses are faced with untenable choices to FUEL THEIR FLEETS – RAISE PRICES, CUT RAZOR THIN MARGINS, or LAYOFF WORKERS who will likely be difficult and more expensive to replace.

Even if the conflict with IRAN reaches a swift settlement, it will take some months for the ripple effects on prices to dissipate and many – if not most – prices will NOT roll back.

The August (2026) total PPI is UP 5.4 percent compared to a year ago (2025), and acceleration UP from 4.8 percent in July (2026).

The core PPI for August (2026) – excluding FOOD, ENERGY and TRADE SERVICES – is UP 4.7 percent, the same as in July (2026).

The PPI for FOODS is UP only 0.1 percent from August 2025, but ENERGY soars 24.4 percent.

TRADE SERVICES is UP 4.5 percent year-over-year in August (2026) compared to being UP 4.0 percent in July (2026).

FOOD PRICES often moderate in the late SUMMER and EARLY FALL as the harvest comes in.

HOWEVER, the cost of GETTING FOOD TO CONSUMERS is going to INCREASE PRICES more than usual in the next month or two (2).

The INCREASE in ENERGY PRICES is “EXCEPTIONALLY” LARGE and probably will east up a bit going into October (2026) but it will still be a substantial move UPWARD.

TRADE SERVICES are already feeling the impacts of “CHAOTIC” TARIFF POLICY and TRANSPORTATION COSTS.

The August (2026) CPI is UP 3.4 percent year-over-year, the same as in July (2026) and virtually the same as being UP 3.5 in June (2026).

The CORE CPI – excluding FOOD and ENERGY – is UP 2.4 percent from August 2025, one-tenth below being up 2.5 percent in July (2026). However, the improvement is mostly due to slower increase in FOOD PRICES while ENERGY COSTS continue to INCREASE.

The CPI for FOOD and BEVERAGES is UP 2.6 percent in August (2026) from a year ago (2025), DECREASING three-tenths from up 2.9 percent in July (2026). The CPI for ENERGY is UP 16.3 percent year-over-year, HIGHER than the 14.7 percent increase in July (2026).

While the August (2026) and July (2026) readings represent something of a plateau in upward CONSUMER PRICE PRESSURES, this will be little consolation to households which have seen their NON-DISCRETIONARY SPENDING DECREASE their overall spending power and eat up any buffer from prior wage gains.

Thus, the FED is expected to implement a 25 bp INTEREST RATE INCREASE as INFLATION pressures build….

PEACE & BLESSINGS

Kenneth Reaves, Ph.D.

Friday, July 31^st, 2026

“ELECTRIFY” Your Investment Portfolio Profits

For two (2) decades, U.S. ELECTRICITY DEMAND barely moved…

AI DATA CENTER CENTERS JUST ENDED THAT!!!

The “BORING” ESSENTIAL SERVICE companies that kept the grid running through the “QUIET” years are now at the center of a STRUCTURAL REPRICING most investors haven’t caught up to.

The engineering marvel, known as the HOOVER DAM has been closed since Monday, July 28^th, 2026 as maintenance crews work to repair a damaged cable system. For a tourist attraction that welcomes over a million ticketed visitors annually, the unexpected closure is a letdown. Fortunately, the site’s power generating operations continue to run without interruption.

HOOVER DAM’s giant turbines can produce about 4 billion kilowatt hours of electricity annually. According to the Energy Information Administration (EIA), total power consumption across the United States reached 4.2 trillion kilowatt hours last year (2025).

In other words, we need about 1,000 HOOVER DAMS to keep the lights on.

HOWEVER, that’s still NOT nearly enough to meet tomorrow’s demand — which for YOU, ME, WE the ATWWI FAMILY, that means opportunity to get “P.A.I.D.”!!!

That wasn’t always the case…

There was a long dry spell between 2003 and 2023…

During that stretch, U.S. power demand barely budged… inching at a meager 0.5% pace. EIA data shows an even slower 0.1% crawl over most of that time frame.

POPULATION GROWTH didn’t stall. Nor did RESIDENTIAL and COMMERCIAL CONSTRUCTION.

BUT, ask any REGIONAL UTILITY or LOCAL POWER CO-OP, and they would tell you that NATURAL GROWTH was offset by IMPROVED EFFICIENCY, leaving demand “FLAT”.

A 100-watt light bulb turned on for 10 hours runs up 1,000 watt-hours (WH) on the meter, whereas a 60-watt bulb will add only 600 WH to the monthly tab. So even with many more lightbulbs, customers didn’t pull too many more kilowatt hours.

But then came a “BOMBSHELL” study in 2023 entitled “the Era of Flat Power Demand is Over.”

After compiling data from 700 grid planners across all 50 states, the summary report filed with the Federal Energy Regulatory Commission (FERC) gave a clear heads-up to government policymakers.

“The low and falling levels of load growth for the last 20 years have decisively reversed to a new mode.”

Grid strategists said to prepare for a 4.7% INCREASE in NATIONAL ELECTRICITY DEMAND over the next five (5) years, versus a prior estimate of 2.6%... That’s a “DRAMATIC” 80% UPWARD REVISION.

The new figure wasn’t just plucked out of thin air, but reflects the internal projections of large-scale utilities like DUKE ENERGY (DUK) , GEORGIA POWER COMPANY and The TENNESSEE VALLEY AUTHORITY (TVA).

The pace could ACCELERATE from there!!!

A new study from Bank of America (BAC) is forecasting 2.5% ANNUAL GROWTH in U.S. ELECTRICITY USAGE by 2030.

Keep in mind, that’s about five (5) times quicker than what was expected.

Grid planners aren’t even sure we have enough HIGH-VOLTAGE TRANSMISSION LINES to accommodate this unexpected “SURGE”.

As for the POWER GENERATORS, they can handle “BASELINE” needs, but “PEAK LOADS” (during weather extremes, for example) were already overwhelming at times. Like any other resource, we could be headed for a SUPPLY DEFICIT…

One model shows a large (170 gigawatt) gap between CURRENT POWER GENERATION and PROJECTED PEAK DEMAND in 2030.

Numerous utilities have already lifted their NEAR-TERM PEAK POWER DEMAND forecasts by 100% or more. For an industry content with steady half-a-percent growth rates, terms like “DOUBLED” are not thrown around too often.

So, what changed???

Well, some of the incremental demand is fueled by the continued electrification of CARS, TRUCKS, and MASS TRANSIT SYSTEMS.

The reshoring of manufacturing activity is shaping up to be an even larger catalyst. Dozens of major companies are shifting overseas production back home, spurred in part by recent legislation to incentivize domestic investment in SEMICONDUCTORS, BATTERIES, INFRASTRUCTURE, and GREEN ENERGY.

Over the past few years, developers have poured hundreds of billions into new industrial plants and manufacturing facilities. These new automotive factories and chip foundries are quite energy intensive.

BUT, it’s the third growth driver that is really pushing the needle…

You think your power bill is high…

Imagine what Microsoft (MSFT) and Amazon (AMZN) pay each month!!!

Yes, I’m talking about DATA CENTERS!!!

A single ChatGPT query requires 10 times the energy of a simple Google search. So you can imagine the “EXORBITANT” power requirements needed for heavier applications. Of course, these facilities were power-hungry long before the introduction of AI. Server racks (and the equipment to keep them cool) have an insatiable appetite.

There are currently about 4,500 DATA CENTERS in the United States, many clustered in big metro areas such as ATLANTA, DALLAS, and WASHINGTON, D.C.

DATA CENTERS already account for roughly one-quarter of the electricity consumption in NORTHERN VIRGINIA. The state’s top provider, Dominion Energy (D), is anticipating an 85% INCREASE in CONSUMPTION over the next 15 years.

That outlook may prove “CONSERVATIVE”, considering one of the newest permits in the region is for a sprawling facility that will require up to 2.4 gigawatts — enough to power 600,000 homes.

The spending continues to accelerate…

Last week (July 20^th-24^th, 2026), Google parent Alphabet (GOOG) shocked the market by forecasting $200+ billion in CAPITAL EXPENDITURES this year (2026).

Microsoft (MSFT) has set its CAPEX BUDGET at $175 to $190 billion. 

Meta (META) has just lifted its GUIDANCE to between $130 and $145 billion.

That’s a half-trillion being deployed this year (2026)… from just three (3) companies. The lion’s share of that capital is being funneled into AI initiatives, which means more DATA CENTER CONSTRUCTION!!!

Digital Realty (DLR), is on the receiving end of all this…

Over the past few weeks alone, it has signed new “HYPERSCALE” DATA CENTER LEASES that will generate another $400 million in ANNUAL BASE RENTAL INCOME.

But let’s take this a step further…

DATA CENTERS can NOT function without POWER!!!

That leads me to Black Hills (BKH)…

Through subsidiaries such as COLORADO ELECTRIC, BKH serves 1.4 million residential and commercial customers across parts of KANSAS, NEBRASKA, IOWA, SOUTH DAKOTA, and several other states.

These operations are safeguarded by regulators who allow the company to RECOUP ITS EXPENSES and EARN FAIR RETURNS ON EQUITY, generally in the 9% to 10% range.

The vertically integrated business also owns various COAL, WIND, and NATURAL GAS POWERED generating assets with 1,400 megawatts of capacity.

BKH has catered to the specialized power needs of DATA CENTERS for over a decade and built a large roster of “HUNGRY” customers.

That includes Microsoft (MSFT), which operates three (3) facilities in CHEYENNE, WYOMING… and Meta (META), whose newest DATA CENTER is just a few miles away.

These large-scale users pay “TARIFFS” under a SPECIAL INDUSTRIAL POWER SERVICE CONTRACT.

Black Hills is currently finalizing an ACCRETIVE MERGER that will add more than 700,000 new accounts.

In the meantime, management is aiming for a full-year PROFIT of $4.35 per share.

From that, the board targets a 55% to 65% DIVIDEND PAYOUT, depending on capital requirements.

With little fanfare, BKH has quietly distributed a steadily growing pile of INCOME to its small base of stockholders. In fact, the company has dependably INCREASED its DISTRIBUTIONS for fifty-six (56) CONSECUTIVE YEARS… a longer streak than Target (TGT) or Pepsi (PEP).

The company’s current ANNUALIZED PAYOUT now stands at $2.81, a HEFTY YIELD approaching 4% while providing what society “NEEDS”!!!

PEACE & BLESSINGS

Kenneth Reaves, Ph.D.

Thursday, April 16^th, 2026

US, ISRAEL, IRAN War Disrupts U.S. ENERGY Landscape

“BIG” changes are happening across the ENERGY landscape due to the US, ISRAEL, IRAN war, and it's not just the prices jumping at the pump…

Those, too, have been climbing higher with the average price for a gallon of gas now standing at $4.09, according to AAA, UP 37% since “OPERATION; EPIC FURY” began on February 28^th, 2026.

A barrel of WTI (CL1:COM) has INCREASED by the same percentage, climbing from $68 to the current $93/bbl.

The U.S. has nearly transformed into a “NET” CRUDE EXPORTER for the first time since WORLD WAR II!!!

Exports last week climbed to 5.2M barrels per day, the highest level in seven (7) months, and imports were slightly above that level, with the gap narrowing to just 66,000 bpd. The U.S. still imports a “MASSIVE” amount of crude since U.S. refineries were set up decades ago to process imported heavier “SOUR” grades, rather than the domestic light “SWEET” crude that has been gushing since the FRACKING revolution in the 2000s.

ATTACKS on REGIONAL ENERGY INFRASTRUCTURE and the CLOSURE of the STRAIT of HORMUZ led to the loss of 10.1M bpd of supply in March (2026), according to the INTERNATIONAL ENERGY AGENCY (IEA), which called it the “LARGEST OIL SUPPLY DISRUPTION IN HISTORY”.

U.S. crude benchmark WTI is now gaining prominence as a more secure alternative to MIDDLE EASTERN barrels, with traders avoiding “CONFLICT ZONES” and refiners looking for alternative sources.

GLOBAL OIL companies are set to generate “BILLIONS” of dollars in “PROFIT” from the current situation, as well as U.S. giants like ExxonMobil (XOM), Chevron (CVX) and ConocoPhillips (COP)!!!

While they are generating more “PROFIT” per barrel, it is still a "HIGH PRICE”/”HIGH RISK” environment, where SUPPLY CHAIN DISRUPTIONS can wipe out gains, as well as disruptions preventing the PHYSICAL DELIVERY of cargoes and INCREASED “OPERATIONAL” and/or “HEDGING” COSTS.

The return of “CASH” to shareholders might be a bigger focus than massive production spikes, so let’s pay close attention when the ENERGY “BIG BOYS” report EARNINGS (ERs) at the end of this month (April 2026).

BULL/BEAR WE DON’T CARE…

YOU, ME, WE our “BELOVED” ATWWI FAMILY will be poised to monetize whatever situation/outcome occurs and get “P.A.I.D.”!!!

PEACE & BLESSINGS

Kenneth Reaves, Ph.D.

Tuesday, February 24^th, 2026

WATER Bills Are INCREASING Faster Than You Think!!!

Aging pipes, climate pressure, and INFRASTRUCTURE costs hit households next.

Most families keep an eye on groceries, insurance, and mortgage payments. WATER is the bill that often gets ignored—until a rate notice arrives and the new price is already locked in.

The warning sign is right in the inflation data: water, sewer, and trash services are UP about 4.7% year over year, according to the latest CPI category table—and unlike many expenses, this is a cost you can't substitute away…

Why This Matters

WATER is a “DISTINCT”, “UNAVOIDABLE” cost driver because it's tied to PHYSICAL INFRASTRUCTURE and PUBLIC HEALTH rules. Pipes, pumps, treatment plants, lab testing, and emergency crews don't get cheaper just because households conserve. A large share of the cost is “FIXED”, so utilities still need steady revenue even when usage falls.

The second driver is FINANCING…

When systems age, repairs turn into “REPLACEMENT CYCLES”—and those projects are usually paid for over decades. In plain terms, your monthly bill becomes the “REPAYMENT PLAN” for capital upgrades, plus the ongoing cost of running a safe system.

That's why water increases often arrive "QUIETLY”

They are approved locally—through a rate study, a utility board vote, or a city council agenda item—then they COMPOUND year after year.

Big providers are now publicly mapping out long spending runways that tend to translate into future rate filings…

A major regulated utility, for example, recently laid out a $46–$48 billion, 10-year upgrade plan in a new report on large-scale INFRASTRUCTURE investment—the kind of capital program that typically supports higher customer charges over time.

At the municipal level, the same math shows up as multi-year "RATE PATHS”…

The San Antonio, Texas utility has proposed increases that would push the typical bill materially HIGHER by 2029, as detailed in a recent local breakdown of a multi-year rate proposal—a clear example of how "SMALL ANNUAL INCREASES” can become a meaningful household line item.

New industrial demand is also adding pressure. With DATA CENTERS expanding rapidly, Microsoft (MSFT) announced steps aimed at preventing the public from absorbing added utility burdens, described in a recent report on DATA CENTER cost and WATER commitments.

Treat WATER like property taxes and insurance: a “MUST-PAY” expense that tends to INCREASE with INFRASTRUCTURE “REALITY”, not personal preference.

Build a modest "UTILITY BUFFER” into your budget—and once a year, read your utility's RATE NOTICE the way you read an insurance renewal, because the “QUIET” bills are often the ones that “BITE” hardest.

PEACE & BLESSINGS,

Kenneth Reaves, Ph.D.

Thursday, February 5^th, 2026

“CLEVER” Way To Monetize Recent U.S/India Trade Deal

Warren Buffett is fond of saying that when you “BUY” shares of a company, you should do so as if the stock market will be “CLOSED” for the next five (5) years. Point being, if you like the LONG-TERM fundamentals of a business, then what it is trading for in the near term is irrelevant.

The other advantage to such an approach is that it would prevent you from selling your shares no matter what happens during that span. Five (5) years ago, the global economy was in disarray after the coronavirus pandemic upended the economy and severely disrupted global supply chains.

Had you bought stock a year or two (2) prior to that, you may have sold your shares and put your money in a savings account earning almost no interest. But had you been forced to hang onto it until now, you would most likely be sitting on a large gain.

That analogy does not just apply to individual businesses. I believe it is even more helpful when thinking about INTERNATIONAL investing. Outside of the United States, most REGIONAL stock markets go through long cycles of “BOOM” and “BUST”.

For that reason, many investors eschew investing OVERSEAS. It is difficult to rationalize tying up investment capital in something that isn’t moving. Especially when the S&P 500 Index is seemingly growing by DOUBLE-DIGITS every year.

I believe now may be an opportune time for YOU, ME, WE the ATWWI FAMILY to move some money into an INTERNATIONAL market that has not gotten much investor attention…

During the past year, the iShares MSCA India ETF (INDA) has appreciated LESS than 5 percent while the State Street SPDR S&P 500 ETF Trust (SPY) is UP more than 15 percent.

Until this week, WALL STREET wasn’t showing much interest in INDIA. The Trump administration’s “FIXATION” with GREENLAND during the WORLD ECONOMIC FORUM in Davos, Switzerland in January (2026) had all eyes on EUROPE.

BUT, that all changed at the start of this week when INDIA PRIME MINISTER NARENDRA MODI had a long phone call with the White House…

Afterwards, TRUMP announced an “AGREEMENT” that would result in both countries LOWERING their reciprocal IMPORT TARIFFS on each other, provided INDIA stops BUYING OIL from RUSSIA and purchases it from the USA (or VENEZUELA) instead.

Purportedly, there are additional “SIDE DEALS” in the works encompassing AGRICULTURE, TECHNOLOGY, and MANUFACTURING. It remains to be seen if the two (2) countries can finish the job, but if they do then INDIA may suddenly find itself no longer sitting at the “KIDDIE TABLE” by the time this THANKSGIVING comes around.

There is a lot of room for ECONOMIC GROWTH in INDIA. It now has the LARGEST population in the world, growing by nearly one (1) percent last year (2025) while China’s population SHRANK.

Its MEDIA AGE of 29.2 is eleven (11) years YOUNGER than CHINA’s, and its FERTILITY RATE of 1.9 is nearly TWICE that of CHINA.

It has a relatively small middle-class population, which bodes well for consumer spending as more INDIAN families raise their standard of living.

In short, all the pieces are in place for a SUSTAINED ECONOMIC “BOOM” in INDIA that could last DECADES!!!

All the country needs is something to get it started, which this week’s “PRELIMINARY” TRADE AGREEMENT may accomplish.

I do not suggest “BUYING” INDIVIDUAL companies in INDIA to capitalize/monetize this opportunity. Its economy is a “WITCH’s BREW” of CAPITALISM, CRONYISM, and OLIGARCHISM rolled into one.

Instead, I suggest taking a “BUCKET” approach by owning the ENTIRE stock market via INDA. Its top holdings include that country’s dominant players in FINANCE, TECHNOLOGY, and MANUFACTURING.

You can think of those businesses as INDIA’s stock market equivalent of what the “MAGNIFICENT 7” TECH STOCKS are to the United States…

They are the engine that drives its economy, and this week they just got a “HUGH” BOOST from an unlikely source.

PEACE & BLESSINGS

Kenneth Reaves, Ph.D.