Dive Brief:
- A survey of 34 utility holding companies by Moody's Investors Service found that planned capital spending will peak at roughly $70 billion in 2013 and 2014 before falling to $65 billion in 2015.
- The decline in spending will coincide with the completion of large generation and transmission projects. NextEra Energy, Cleco, Puget Sound Eergy and Westar will see the greatest decline in capital spending. On the other hand, Southern Company, Scana and Dominion Resources will have risk exposure because of large projects not slated to be finished until 2017-2019.
Dive Insight:
Lower spending on capital projects should improve a utility's positive cash flow and benefit its credit rating due to less need for debt financing.
