...The 'AA-' ratings and Stable Outlook reflect San Antonio City Public Service's (CPS Energy) very strong financial profile. The utility has a large and diversified retail electric and gas customer base, very strong revenue defensibility characteristics, very low operating costs and a neutral operating risk profile for utilities within the Electric Reliability Council of Texas (ERCOT) regional market. Fitch Ratings expects CPS Energy to continue implementing disciplined periodic rate increases to support additional debt and overall financial performance. In August 2026, the Texas governor's office announced a plan to reshape the energy market in cities served by a single electric provider by proposing provisions on retail electric competition; however, no plan details have been released to date. Fitch anticipates leverage will range between 9.0x and 10.0x in its rating case. This should continue to support CPS Energy's very strong financial profile and preserve some headroom at the current...
