Moody's Maintains Utility Credit Ratings, Despite Soaring Restoration Costs

Lower ratings could make it more expensive for utilities to borrow money, a cost ultimately passed on to ratepayers

by Tom Johnson, NJSpotlight.com  The worst storm ever to hit New Jersey has caused enormous headaches for its two biggest electric utilities, as well as millions of their customers, but will not result in lower credit ratings, according to Moody’s Investors Service. In a report issued yesterday, Moody's said that despite the devastation, it will not downgrade the utilities’ credit ratings. The agency made its call even though restoration costs are likely to reach into the billions of dollars when two other utilities in New York and Connecticut are factored in. The assessment is important because reducing the credit ratings could increase borrowing costs for the utilities, an event that would eventually lead to higher costs for ratepayers …

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