At the Public Utilities Fortnightly event, Stuart Pearman, partner and energy practice leader at ScottMadden, presented his views on the economic consequences of new models.
Traditionally, utilities have been known for their security as an investment, their regular dividend payments, and their long-term dependability. They have been well rated by the agencies, and their stock has done well in a time of low interest rates. But some say their future is cloudy. If the traditional model is changing, what do they offer investors? Will their Wall Street ratings decline? Will raising money be more difficult?
This presentation explores the evolution of the business model—the current business model, future potential models, risks, reactions from financial markets, and the process to get from here to there.