The next weak link in the power-deregulation chain is transmission and distribution .

ECONOMIST: California��s power crisis

"These outbreaks have a tendency to stamp themselves out, if you will, if we can get in and ... stop the chain of transmission, " he said.

CNN: STORY HIGHLIGHTS

The transmission network is not the only vulnerable part of the power supply chain, which is one giant bottleneck.

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From such expectations Tulis reasons that oil and gas stocks are undervalued, along with stocks throughout what he calls the "energy chain, " which starts with exploration and production and ends with power transmission.

FORBES: Grab the Energy Chain