Climate and Credit Risks Collide in the Aftermath of Uri

March 12, 2021 — According to a recent letter written to the Texas Public Utility Commission (PUC) by Potomac Economics, the Electric Reliability Council of Texas (ERCOT) made a $16 billion error in pricing during the week of Winter Storm Uri. The significant financial implications of the storm became even more evident for municipal bond investors when Standard & Poor’s released a ratings action report on March 3rd citing it had placed 19 Texas-based municipal power generation organizations under review for possible credit rating downgrades.

  • DATE: March 12, 2021
  • TYPE: PDF

Featured Insights

Podcasts

Are Disasters Really Natural? Insights from a Disasterologist

Many questions are still unanswered following Winter Storm Uri, which left millions of Texans without power and water for days. Could this disaster have been. . . .

Learn more >

ESG Solutions

A Climate Black Swan – The Lessons Learned from Uri

March 8, 2021 -- It is said that everything is bigger in Texas and so it goes for its winter storms. As climatic events go, Winter Storm Uri was surely . . .

Learn more >

Podcasts

Getting to Net Zero

Our planet has been logging the warmest years on record, and we are increasingly experiencing the adverse effects of climate change. It has been widely. . . .

Learn more >