Full Title: The Carbon Effect 2.0: Reassessing the Challenges for Public Power
Author(s): Dennis Pidherny, Olu Sonola, and Roshan Bains
Publisher(s): Fitch Ratings
Publication Date: October 1, 2015
Full Text: Download Resource
Description (excerpt):
Carbon Compliance Remains a Challenge: Fitch Ratings believes preserving financial margins and credit quality, while complying with the EPA’s final Clean Power Plan (CPP), remains most challenging for public power and cooperative utilities operating in states subject to sizable mandated carbon-reduction goals, high carbon-reduction costs and a relatively high cost of electricity.
Final Rules Shift Burden: Significant changes to the CPP’s reduction goals and estimated carbonreduction costs have shifted the relative challenge facing each state compared with the findings in Fitch’s report The Carbon Effect (Assessing the Challenges for Public Power) published on Jan. 30, 2015. States facing the greatest challenge now include Kansas, Missouri, Nebraska, Tennessee and West Virginia based on the Fitch-calculated carbon cost recovery index (CCRI).