The U.S. public power utilities outlook is expected to remain stable in 2014, according to a new report from Moody’s.
Moody’s 2014 Outlook – US Public Power Electric Utilities states that even though the outlooks seems stable, “rising costs tied to environmental compliance and the transition to cleaner power sources continue to pose long-term risks.”
However liquidity and leverage ratios for the industry are expected to improve in 2014.
The report found that environment compliance plays a long-term risk. Most recently, the Environmental Protection Agency placed standards on carbon emissions for new coal-fired power plants, halting many plans to build new coal-fired units. The report stated that the estimated cost to abide the regulations placed on coal-fired generation could impact ratepayers.
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