S&P puts Puget Energy on watch

S&P said it placed its ratings for Puget Energy Inc. and its subsidiary Puget Sound Energy Inc. on CreditWatch with negative implications.

The Washington Utilities and Transportation Commission effectively turned down a rate increase over the next two years to help offset the economic effects of the pandemic on the utility’s customers, S&P said.

“The CreditWatch placement reflects the increased possibility of a downgrade over the next three months. The order was significantly weaker than expected in that the company requested a nearly $200 million rate increase and only received $2 million. The commission also denied the company’s request for an attrition adjustment of roughly $39 million, which increases the company’s regulatory lag,” S&P said in a press release.

The agency said it aims to resolve the CreditWatch in the coming months once it gets more information on any actions the company takes to offset the weakness in financial measures along with added information around regulatory actions in the state.

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