Summary: Austin, Texas; Retail Electric

S&P Global Ratings affirmed its 'AA' long-term rating and underlying rating (SPUR) on Austin, Texas' electric utility system (d/b/a Austin Energy) revenue debt, and removed the rating from CreditWatch with negative implications, where it had been placed on March 3, 2021. The outlook is negative. The removal of the rating from CreditWatch placement reflects our view of the utility's limited exposure to the Electricity Reliability Council of Texas' (ERCOT) market price volatility this summer compared to its peers, because of the utility's dispatchable generation resources and plans to pursue additional bilateral contracts as needed, which tempers its already sizable and growing portfolio of intermittent renewable resources. However, access to and the cost of bilateral resources proximate to peak demand events

...S&P Global Ratings affirmed its '##' long-term rating and underlying rating (SPUR) on Austin, Texas' electric utility system (d/b/a Austin Energy) revenue debt, and removed the rating from CreditWatch with negative implications, where it had been placed on March 3, 2021. The outlook is negative. The removal of the rating from CreditWatch placement reflects our view of the utility's limited exposure to the Electricity Reliability Council of Texas' (ERCOT) market price volatility this summer compared to its peers, because of the utility's dispatchable generation resources and plans to pursue additional bilateral contracts as needed, which tempers its already sizable and growing portfolio of intermittent renewable resources. However, access to and the cost of bilateral resources proximate to peak demand events remains uncertain, especially in the ERCOT market before extreme weather events occur. The negative outlook reflects Austin Energy's current plans to revise its power supply portfolio,...

Summary