A report by CRA’s Andrew Dressel was referenced in the article titled “Nearly 100 utilities’ credit ratings downgraded since 2020 as wildfire risks grow” by Utility Dive.
The article explains how nearly 100 utility companies have had their credit ratings downgraded since 2020 due to increased wildfire risks. This has made it harder for utilities to borrow money, while insurance and wildfire mitigation costs have risen, often leading to higher rates for consumers. Dressel highlights that wildfire mitigation practices are proving effective in reducing legal risks for utilities. While this trend could expand, Dressel suggested utility companies can manage wildfire risks with careful planning and policy support, potentially stabilizing their credit outlook in the long term.
