DBRS Morningstar Releases “Risks of the Green Energy Transition for U.S. Regulated Utilities” Commentary

DBRS Morningstar released a commentary titled “Risks of the Green Energy Transition for U.S. Regulated Electric Utilities” that address two major potential credit risks for electric utilities undergoing the decarbonization process. The first is risks associated with financing the substantial capital expenditures required for the transition and potential stranded costs. Stranded costs are the expected return as well as initial investment a utility company won't be able to recover from its customers. Second, there are risks associated with grid stability and unplanned outages, as the Texas winter storm highlighted earlier this year. Any negative credit impact will depend on how severe these risks affect operations and the regulatory support the utilities receive.

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The commentary is available at www.dbrsmorningstar.com.

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