Management Strategies
5 ways to improve your utility’s bond rating
Managing a debt rating is a key obligation of the utility Chief Financial Officer. Debt is part of the utility business. Utilities build long-term infrastructure, with a useful life of 30-40 years to serve customers and finance that infrastructure with long term debt. Customers pay for debt service on that debt thought their rates, charged for current use of the system.
The Board's Role in Managing the Utility Bond Rating
Are lines blurred in your utility over financial responsibilities? The responsibility for the bond rating is part of the role of the utility's Board of Directors through the approval of budgets, electric rates, and short and long-term strategy. The better the bond rating, the lower the interest rate and more funds are retained by the utility vs. paid to bond holders. What are strategies to follow? Here are some insights.