...Fitch Links the Ratings: Legal ownership structure and lack of explicit ring-fencing between Indianapolis Power & Light Company (IPL) and its parent, IPALCO Enterprises, Inc. (IPALCO), are key elements for linking IPL's Issuer Default Rating (IDR) to the IDR of IPALCO. Fitch Ratings has notched IPL's IDR one notch higher than IPALCO's IDR given its low-risk business profile and a moderate capital structure. High Capex: The intensity of the current capex cycle at IPL is expected to rise. IPL's current capex plans include retrofitting most of its economical coal-fired electricity generation units with the new emission-control equipment and new capacity, replacing its inefficient generating capacity. IPL has received a certificate of public convenience and necessity (CPCN) from the Indiana Utility Regulatory Commission (IURC) to build a new 650-MW combined-cycle gas turbine plant and to convert 200 MW of its coal-fired units to natural gas. Near-Term GRC Likely: In Fitch's opinion, the continuously...
