Report

PSS: Are There Offsets to Pandemic Impacts?

Wall Street finance

During the pandemic, utilities could save customers millions or billions of dollars by refinancing some portion of their existing debt.

During the pandemic, many states have banned disconnections from utilities, making many utility companies worried about rising bad debt. In an October 2020 analysis, PSS identifies an opportunity for utilities to save customers millions or billions of dollars by refinancing some portion of their existing debt.

PSS’ analysis demonstrates that Duke Energy, Dominion, and Pacificorp could cover five times their 2019 bad debt by refinancing 25% of existing debt. Many utilities are protected against losses from bad debt with special riders added to customer bills who do pay making bad debt a zero risk item with timing of cash flow being the only concern.

Pearl Street Station (PSS) Finance Lab provides economic analysis and education to help the industry make progress towards a sustainable and clean energy future.