...Serving virtually all of Bexar County and small parts of other surrounding counties, as well as several municipalities on a firm, wholesale basis, CPS Energy provides electric service to approximately 860,930 metered accounts and gas service to 358,000 metered accounts, making it one of the biggest public power systems in the U.S. The vertically integrated electric system accounted for 94% of total operating revenue in fiscal 2020, with gas revenue accounting for the remainder. While the COVID-19 pandemic has lowered electric sales 2.4% below budget to date (on a weather normalized basis), we expect the utility's lower 1.4x projected coverage metric for fiscal 2021 to slowly improve as the utility considers a base-rate increase. In our view, if the utility's revenue-raising flexibility is challenged and coverage metrics consistently weaken below management's projections and what we consider to be very strong levels, the rating could be pressured. The rating further reflects our opinion...
