sector outlook: u.s. public power and electric cooperative ...€¦ · sector outlook: u.s. public...
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Sector Outlook: U.S. Public Power and Electric Cooperative Sector
Dennis Pidherny
Managing Director
Matthew Reilly, CFA
Director
January 25, 2016
2/10/2016
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www.fitchratings.com
2016 Outlook: U.S. Public Power and Electric Cooperative Sector
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www.fitchratings.com
Sector Outlook: Key Sector Characteristics
• Autonomous ratemaking authority
• Essentiality of electric utility service
• Mandate to serve defined area, with near monopolistic characteristics
• High concentration of residential and small commercial customers
• Relative capital cost advantage over investor-owned utilities
• Customers/ratepayers are the ultimate “stakeholders”
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www.fitchratings.com
Sector Outlook: Key Issues
Carbon Compliance Challenges Ahead
2/10/2016
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www.fitchratings.com
Sector Outlook: Key Issues
Rate Pressures Stabilize
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2006 2007 2008 2009 2010 2011 2012 2013 2014
AA A BBB/BB
Debt Service CoverageIndicates the margin available to meet current debt service requirements.
Source: Fitch Ratings.
(x)
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www.fitchratings.com
Sector Outlook: Key Issues
Lower Fuel Cost and Interest Rates Broadly Positive
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www.fitchratings.com
Sector Outlook: Key Issues
Improving Economics of Renewable Energy
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www.fitchratings.com
Fitch Ratings Public Power Team
• Dennis Pidherny, Sector Head
+1 212 908-0738
• Christopher Hessenthaler
+1 212 908-0773
• Kathy Masterson
+1 512 215-3730
• Matthew Reilly
+1 415 732-7572
• Lina Santoro
+1 212 908-0522
• Alan Spen
+1 212 908-0594
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