Fitch: Rules on Coal Investment Could Affect Debt Ratings of Electric Co-Ops and Utilities

first_imgFitch: Rules on Coal Investment Could Affect Debt Ratings of Electric Co-Ops and Utilities FacebookTwitterLinkedInEmailPrint分享Steven Johnson for Electric Co-Op Today:Electric cooperatives and public utilities have dealt well with past limits on access to capital, but new curbs on coal investment could pose a challenge, Fitch Ratings said.California regulators have called on insurance companies doing business in the state to sell their thermal coal investments, including those in utilities that generate 30 percent or more of their energy from coal, regardless of location.“Should similar policies and restrictions aimed at utilities with existing coal generation versus new investment proliferate, public power systems could be faced with the difficult decision of prematurely retiring existing units or confronting a significant loss of liquidity,” Fitch said.In turn, that could increase operating and debt service costs that co-ops would have to account for in some fashion, the service said.Full article: Fitch: Coal Investment Curbs Could Affect Co-opslast_img

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