Webinar:  Getting Ahead of the Curve: Reducing Utility Rate Increases Caused by COVID-19

Webinar submitted questions:

FINAL ORDERED QUESTIONS LIST 7-8-20 for Posting.docx

Presentations:

Hansen - Securitization_SURFA Presentation.pdf

Cicchetti - SURFA July 8 2020 Webinar Slides_.pdf

Federico - SURFA—Getting Ahead of the Curve Reducing Utility Rate Increases Caused by COVID-19.pptx

surfa 7-8-20 fichera.pptx

This event requires registration (see link below). NOTE:  No registration fee required.

Moderator:

Mark Cicchetti, President, SURFA; Chief of Finance, Tax, and Cost Recovery for the Florida Public Service Commission

Click here for bio: Cicchetti Bio.pdf

Panelists: 

Joseph Fichera, Chief Executive Officer, Saber Partners, LLC; Current advisor to the North Carolina Utilities Commission Public Staff on Securitization

Click here for bio:   Fichera Bio.pdf

Senator Christopher Hansen, PhD, State Senator, Colorado District 31; Sponsor of 2019 Colorado Utility Securitization Authorizing Legislation for Early Plant Retirement

Click here for bio:  Hansen Bio.pdf

Barbara Chapman, Senior Director, Fitch Ratings US Corporates - Utilities, Power & Gas; Investment professional for twenty-five years specializing in utility, midstream and energy fixed income research.

Click here for bio:  Chapman Bio.pdf

J. Randall Woolridge, PhD, Professor of Finance as well as the Goldman Sachs & Co. and Frank P. Smeal University Fellow in Business Administration in the College Business Administration of Pennsylvania State University; Author of Basic Principles of Finance:  An Introductory Text

Click here for bio:  Woolridge Bio.pdf

Lillian Federico, Research Director, Energy; S&P Global Market Intelligence; Author of S&P May 19, 2020 Report: "Securitization May Prove To Be an Effective COVID-19 Cost Recovery Option"

Click here for bio:  Federico Bio.pdf

Description:

The COVID-19 pandemic, and the financial crisis it has caused, creates new financial challenges for utilities, regulators and consumers that could push utility rates higher. To be Ahead of the Curve, state legislatures and regulators need to collaborate on tools to address the financial implications of the COVID-19 crisis on electric, gas and water utilities. 

This webinar is offered to gain insight into potential rate pressure and explore securitization as a potential solution.  The Webinar will provide a framework for discussion among legislators, regulators and other stakeholders of the benefits, costs and risks of securitization. 

Securitization is a financing tool that uses the regulatory process, usually with special enabling legislation, to create a “ratepayer-backed bond.”  These securitization bonds can be used in place of traditional utility debt and equity finance which, through the ratemaking process, normally embeds the utility’s pre-tax weighted average cost of capital in rates. 

Using securitization could help regulators and utilities lessen the financial burden on utility customers and protect the credit quality of utilities.  This tool has proven successful in the financial markets to address other rate shocks associated with storm damage, excess power procurement costs, environmental compliance and other regulatory assets like the early retirement of nuclear and coal facilities.  It has allowed utilities to raise needed capital by selling high-quality, low interest, long-term bonds without recourse to the utility.  This can materially reduce upward pressure on utility customers’ retail rates. 

The Webinar will be structured as an interactive discussion centered around questions and answers so audience participation is strongly encouraged!

Register Here:   https://surfa.webex.com/mw3300/mywebex/default.do?siteurl=surfa