U.S. Merchant Power Sector's Near-Term Economic Prospects Overshadow Longer-Term Environmental Upside Oct 11

  • ID: 2048167
  • October 2011
  • Region: United States
  • Standard & Poors
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  • Allegheny Generating Co.
  • Calpine CCFC Holdings LLC
  • Dynegy Holdings LLC
  • GenOn Americas LLC
  • Oglethorpe Pwr Corp
  • Salton Sea Funding Corp.
  • MORE

Standard & Poor's Ratings Services' 2012 outlook for the U.S. merchant power and independent power producers (IPP) sector is negative. As the economy stumbles along, weather-adjusted demand for electricity has declined nationally year-to-date. We are somewhat concerned that demand could suffer and the capital markets could become less accessible to these issuers due to the increasing prospects of a double-dip recession. While investment-grade diversified energy companies are somewhat insulated from market forces because they hedge their expected generation, issuers in the speculative-grade categories could witness rating movements, in our view. We note that a number of speculative-grade IPPs already have negative outlooks. At Standard & Poor's, we publish monthly our economists' scenario of where we think the U.S. economy could...

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Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

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- Basin Elec Pwr Coop
- Oglethorpe Pwr Corp
- Buckeye Pwr Inc
- Tri-State Generation & Transmission Assn
- Associated Elec Coop Inc
- Old Dominion Elec Coop
- Square Butte Elec Coop
- Tennessee Vy Auth
- Covanta Energy LLC
- Energy Future Holdings Corp.
- San Miguel Electric Cooperative Inc.
- Energy Future Competitive Holdings Co.
- Potomac Capital Investment Corp.
- Allegheny Generating Co.
- Edison Mission Energy
- Cogentrix Energy Inc.
- Wheelabrator Technologies Inc.
- The AES Corp.
- Calpine Corp.
- Salton Sea Funding Corp.
- Dynegy Holdings LLC
- NRG Energy Inc.
- Edison Mission Energy Funding Corp.
- Georgia Transmission Corp.
- Centennial Energy Holdings Inc.
- National Grid Generation LLC
- Mirant Americas Energy Marketing L.P.
- GenOn Energy Holdings Inc.
- Constellation Energy Group Inc.
- Dynegy Inc.
- GenOn Americas LLC
- Allegheny Energy Supply Co. LLC
- Orion Power Holdings Inc.
- Illinois Power Generating Co.
- Midwest Generation, LLC
- Covanta ARC LLC
- Edison Mission Marketing & Trading Inc.
- Exelon Generation Co. LLC
- National Energy & Gas Transmission Inc.
- PSEG Power LLC
- RRI Energy Inc.
- Talen Energy Supply LLC
- Southern Power Co.
- Great River Energy
- Calpine Construction Finance Co. L.P.
- Calpine Generating Co. LLC
- Buckeye Pwr Gen LLC
- Thermal North America Inc.
- Iberdrola Renewables Holdings Inc.
- Calpine CCFC Holdings LLC
- Foresight Energy L.P.

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