Fitch Issues Report on Utility Capital Expenditures

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NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has published a report titled 'No Relief in Capital Spending Plans'. The report finds that the rate of capital investment in the power and gas sector is high and expected to remain so for the next several years.

Based on a Fitch's study covering the 2011 - 2013 period, capital spending will continue trending upward through 2012, then fall off in 2013. The study is based on a sample set of 24 parent holding companies that collectively own 80 utilities or merchant generation subsidiaries.

Fitch believes 2013 capital spending plans are understated and will be revised upward, with further increases anticipated in 2014. Environmental compliance costs and transmission upgrades are a primary driver of the expected rise in spending plans. Smart grid and smart meter investments, outlays to meet renewable standards imposed in a large number of states, nuclear up-rate programs, and reliability enhancements also account for the high rate of capital spending.

The report is available at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' (Aug. 12, 2011);

--'Parent and Subsidiary Rating Linkage' (Aug. 12, 2011);

--'Recovery Ratings and Notching Criteria for Utilities' (May 12, 2011);

--'Rating North American Utilities, Power, Gas and Water Companies' (May 16, 2011).

Applicable Criteria and Related Research: No Relief in Capital Spending Plans

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=658590

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647229

Parent and Subsidiary Rating Linkage

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647210

Recovery Ratings and Notching Criteria for Utilities

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648449

Rating North American Utilities, Power, Gas, and Water Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=625129

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Fitch RatingsRobert Hornick, +1-212-908-0523Senor DirectorOne State Street PlazaNew York, NY 10004orMedia RelationsBrian Bertsch, +1-212-908-0549[email protected]

Source: Fitch Ratings

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