JPMorgan analysts are recommending investors take a neutral stance on electric utilities and independent power producers, a less upbeat position than the securities firm took earlier this year.

In a research note Monday, JPMorgan also downgraded its rating on American Electric Power to "Neutral" from "Overweight" and Consolidated Edison Inc. to "Underweight" from "Neutral." It upgraded FPL Group to "Overweight" from "Neutral."

The analysts said they took a positive stance on the utilities sector earlier this year because it expected ongoing uncertainty about the U.S. economy coupled with earnings momentum to support stocks through the year.

"We were wrong," the analysts wrote. "A number of concerns (many of which we do not believe have merit) emerged in the past few weeks to pressure the group. Despite missing the opportunity to move to a negative stance on the sector, given the shifting tone of recent investor interest, we believe the pressure on this group is subsiding."

The firm also said it has received calls from a number of investors worried about T. Boone Pickens' high-profile plan supporting wind power could hurt power prices.

Pickens has been on a $58 million publicity tour to promote his plan to erect wind turbines to generate electricity, replacing the 22 percent of U.S. power produced from natural gas. The freed up natural gas then could be used for transportation.

JPMorgan said it agreed that such a $1 trillion investment in wind power "would crush power prices."

"However, we believe the time horizon for investment of this magnitude is extremely long," the note said. "In the near term, the level of wind-farm development in the U.S. has not increased materially."