Regulatory Risk in Counterparty Assessment

Time: Tuesday, March 24, 2020 - 9:15am to 10:15am
Level: Intermediate/Advanced

About

Qualitative analysis is important in evaluating any energy company, but particularly regulated utilities. This session will cover the direct impacts of regulators through ratemaking, control of the types of businesses and investments that utilities are permitted to conduct and the potential risks they assume. This session will also cover how the regulatory and legal environment can also contribute to drastic changes to a utility’s financial health as we have seen historically with Nevada Power, and Pacific Gas & Electric Company through its 2 bankruptcies. The discussion will investigate what clues can be found within the Management Discussion & Analysis section and footnotes as well news reports that provide important markers.

1 hr CPE – Specialized Knowledge; 1 hr CE

Objectives

  • Identify the key regulatory and legal risks that credit analysts should monitor to evaluate the health of regulated entities including utilities.