Brazos Electric Power Files Ch. 11, S&P Places Six Texas Utilities on CreditWatch with Negative Implications

03/01/2021

  • This morning, the Brazos Electric Power Cooperative filed a Chapter 11 Petition in U.S. Bankruptcy Court.

  • Brazos Electric reports it has $2 billion of payments due to ERCOT, and finds itself in a “liquidity trap it cannot solve.”

  • S&P placed the ratings of six Texas utilities on CreditWatch with negative implications on Friday, Feb 26. Brazos Electric was one of the utilities.

  • According to S&P, it is “Too early to tell” whether there could be federal or state relief that to help lessen the burden experienced by the utilities. “In the absence of government intervention, we [S&P] expect that customers will see the effects of any debt additions or higher rates on their bills for many years,” wrote the rating agency.

Download the full article

Read more Municipal Commentary

×
;