Standard & Poor’s projects that California public power utilities will continue to maintain stability in their credit ratings, despite the challenges facing them. The rating agency released a report, “California Public Power Utilities Wrestle With Competing Energy Demands And Global Warming Strategies,” on Monday.For more than a decade, the report said, the California electric industry has experienced a series of challenges, such as its failed attempt at deregulation, extreme power market price volatility, drought, and, most recently, wildfires.As a whole, the state’s public power industry has met those challenges with good financial performance, management planning, and strong and stable customer bases, the report said.Today, the utilities must face growing load demand, reliance on natural gas, and the state’s position as a leader in addressing global warming.“Rating upgrades may be limited due to cost pressures associated with drought, natural gas supply, and demands on the utilities to address renewable energy targets and other environmental regulations unique to the state,” the report said.
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