The revision in the Rating Outlook at CEHE
is driven by the removal of the risk related to a potentially unfavorable decision in the stranded-cost litigation, which Fitch had highlighted as a rating concern in the past.
The consideration of a positive rating action for CEHE
is tied to the outcome of the pending stranded cost litigation.
Fitch's rating concerns for CEHE
include rising operating costs during a base rate freeze that extends to mid-2010 and during such time that rate relief is approved, and the potential for an unfavorable decision in the stranded cost litigation.
Ratings of CEHE
are supported by credit ratios consistent with a 'BBB' lower risk utility as a transmission and distribution utility that has no commodity price risk or provider of last resort obligations.
CERC and CEHE
are undertaking capital expansion projects in an environment of rising labor and material costs.
provides electricity to approximately 2 million customers in the Houston area.
has established a two-year committed backstop credit facility to cover the maturity of a $1.
first applied for non-profit status with the Department in the fall of 2012.
The bonds will also be secured by a pledge of CEHE
general mortgage bonds.
3 billion secured term loan at CEHE
, and bank debt at CNP.
The balance of MDU's earnings were derived from CEHE
, a direct wholly owned subsidiary of MDU which serves as the primary investment vehicle for MDU's portfolio of diversified businesses.
Under the holding company structure adopted by CNP (senior unsecured rated 'BBB-' by Fitch), CEHE
is a second-tier operating subsidiary of CNP, operating as a pure T&D electric utility.