Moody’s: Munis, Co-Ops Face Major Risks From Coal Plant Closures

first_img FacebookTwitterLinkedInEmailPrint分享Washington Examiner:Credit ratings giant Moody’s is warning that a big chunk of the nation’s electric utilities are at risk…because of the transition toward renewable energy, which is occurring despite President Trump’s decision to pull the U.S. out of the Paris climate change agreement.The report, issued Tuesday, says not-for-profit public power and cooperative utilities, which generate and transmit electricity, are facing “rising risks” from the transition to less carbon dioxide-emitting power plants, because they own most of the coal plants across rural America.The company has begun examining the effects of climate policy on the utility sector through the lens of the Paris Agreement. Moody’s found that Trump’s withdrawal from the accord a year ago will be limited because of “customer preferences and technology trends.”In addition, utilities “have consciously transitioned towards cleaner generation, even in states politically opposed to carbon regulations, because of low natural gas prices and the declining cost of renewables,” the report found.Nevertheless, the biggest risk to publicly owned utilities comes if they shut down their coal plants but still have to pay for them.The report says the public utilities and co-ops are facing the same challenges that their for-profit counterparts are facing, driven by a combination of state and local policies and customer preferences. But public power and co-ops don’t have the resources to move as quickly to build more low-carbon renewable energy resources and are much more dependent on coal because of their locations.More: Electric Utilities At Risk From Climate Goals Despite Paris Exit, Moody’s Says Moody’s: Munis, Co-Ops Face Major Risks From Coal Plant Closureslast_img read more