...Financial Stability: Orange & Rockland Utilities, Inc.'s (ORU) credit profile reflects the financial stability and predictability provided by a multiyear electric rate plan in its New York regulatory jurisdiction that expires in June 2015. ORU generates additional modest earnings from regulated subsidiaries Rockland Electric Co. (RECO) and Pike County Light & Power Co. (Pike), which operate in New Jersey and Pennsylvania, respectively. RECO's `BBB+' Issuer Default Rating is aligned with ORU's and reflects ORU's credit profile. Pending Rate Case: ORU filed for rate base increases of $33.4 million in its electric business and $40.7 million in its gas business. The rate filings are based on a 9.75% return on equity (ROE) and a 48% common equity ratio. Investments in base infrastructure and recovery of property taxes and storm restoration expenses are the main drivers of rate request. A balanced rate order will be critical to maintaining the existing rating profile, in light of heavy capex...
