...El Paso Electric Company's (EPE; BBB/Stable) ratings are underpinned by its operations as a vertically integrated, regulated utility in Texas and New Mexico, operating within a challenging but improving regulatory environment. Several regulatory riders, strong customer growth, and demand support EPE's financial profile, despite the challenges of regulatory lag. Significant capital expenditure (capex) plans are expected to pressure near-term credit metrics, but supportive regulatory mechanisms and equity infusions from its parent, Infrastructure Investments Fund (IIF), are expected to support the large capex plan. Fitch Ratings expects funds from operations (FFO) leverage to average 5.0x over the forecast period....
