NEW YORK--(BUSINESS WIRE)--The emergence of competing distributed generation (DG) and other technologies and their impact on the grid, state jurisdictional regulatory compacts, and evolving utility business models were among the primary topics covered at the 49th Annual Edison Electric Institute (EEI) financial conference, as discussed in Fitch Ratings' wrap-up report.
As discussed at Fitch's 2014 breakfast presentation, the continuing growth of DG costs for roof-top solar systems has come down substantially in recent years. More important, Fitch opined that DG cost curves are likely to continue their downward trend, resulting in system prices that are competitive with central station systems in some regions. Fitch also discussed ongoing efforts in some states to balance increased solar usage, incentives and cross-subsidies.
Electric utilities continue to benefit from historically low interest rates, subdued natural gas prices and a generally benign regulatory environment. Fitch expects flat to modestly higher weather-normalized kWh sales growth for the regulated utility segment, as DG along with energy efficiency are likely to create significant headwinds for utility sales growth.
Fitch expects the outlook for regulated utilities to be stable in 2015, with credit metrics consistent with current median ratings of 'BBB+' for utility holding companies and 'A-' for operating utility subsidiaries.
The full 'EEI Wrap-Up Report' is available at 'www.fitchratings.com' or by clicking on the link.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: EEI 2014 Wrap-Up: Distributed Generation and the Grid
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=818108
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