From Scott Carlberg

Ample money is fuel for utility company health, and that is increasingly the case. “Utilities are in the midst of a sweeping transformation to modernize grids and slash emissions … The flood of cheap cash from bonds is making that possible.” An energy magazine reports a record need for utilities to float new debt to meet their strategic and operational needs.

From TD World website

Ready access to money, and the ability to manage that cash, is a requirement to transform and serve customers. “Utilities are likely to use at least two-thirds of the proceeds for capital spending … Capex is the main driver,” said one finance expert.

Capital opens doors for healthy companies. Leaders of healthy organizations are in charge of the money and their future.

In a high-debt organization, lack of money can close doors, debt can be in charge and limit the future.

Quick response, future stability, keen focus, and adaptability mark companies with financial flexibility. (Source) Smart, successful companies balance the amount of debt that carry for capital improvements against the strength of their balance sheets.

The 2020’s is going to be a decade of monumental shifts in our electric grid, customer service, and even how the companies will organize to meet customer needs. As we start the 2020’s companies with healthy balance sheets are already making big moves to borrow more money to meet these needs.

The report says, “Financial flexibility means different things to different business leaders, but it’s something every company should strive for. With it, there’s far more potential and peace of mind.”


ECC blogged about the capital intensity of utilities before: Utilities Are a Capital Intense Business and Utilities Are in a Modernization Race.