S&P comments on MISO’s survival tactics


NEW YORK, Dec. 5, 2002 — Amidst all the dark clouds in the U.S. energy industry, one should keep in mind that this sector still has companies with very strong creditworthiness and even a few that have a positive outlook.

The Midwest Independent Transmission System Operator Inc. (MISO; BBB+/Positive/–) is one such company with a positive outlook from Standard & Poor’s Ratings Services. MISO serves what could be called a niche, but important market in the U.S. power sector.

“The story of MISO is one of survival. The company is likely to overcome what can easily be considered the worst-case scenario, and currently has a positive outlook,” said Standard & Poor’s credit analyst Terry Pratt.

In late 2000, the worst-case scenario came to pass: Illinois Power Co., Commonwealth Edison Co., and Ameren Corp. gave notice of their intent to leave MISO as of December 2001, despite a hefty exit fee, and join a competing organization, the Alliance Regional Transmission Organization (RTO).

Standard & Poor’s promptly revised MISO’s outlook to negative, because the utilities’ departure reduced load that would be subject to the MISO adder by 46%, and could have led to other member departures and ultimately, the much-feared death spiral.

Instead of folding, MISO changed its management and its business philosophy. This decision, along with a number of very favorable developments, proved to be a very good move for MISO’s survival and its creditworthiness.

The report, titled “Midwest Independent System Operator Survives a Worst-Case Scenario,” is available on RatingsDirect, Standard & Poor’s Web-based credit research and analysis system.

Standard & Poor’s is a provider of financial data, analytical research, and investment and credit opinions to the global capital markets. For more information, visit our Web site at http://www.standardandpoors.com.


Author

  • The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

Previous articleHusky Injection Molding Systems goes green with OPG
Next articleWisconsin Energy completes Wisvest-Connecticut sale
The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

No posts to display