S&P Global Ratings brought down the rating of Berkshire Hathaway Energy’s Topaz Solar Farms which generates 550-megawatt, to junk. The reason was that the the plant's sole purchaser of the electricity being the PG&E Corp.
In line for similar or at least some negative fates are others who have similar or larger energy contracts. PG&E had more than 6 gigawatts of deals to buy wind and solar power from suppliers including Sempra Energy and Consolidated Edison Inc.
PG&E faces as much as $30 billion in potential liabilities from wildfires its equipment may have caused. PG&E seem to be never learned from past mistakes, like smaller and larger fires caused by it's power lines.
“The downgrades underscore PG&E’s clout in California’s power industry, and any potential threats to the company can have wide-reaching ripple effects,” S&P Global Ratings said in a statement.
S&P lowered ratings on Topaz Solar by five notches to ’B’ from ’BBB-’ and maintained the ratings on CreditWatch, meaning it may make further cuts.
Fitch has already cut its own ratings for the farm because of PG&E’s fire liabilities. Earlier on Thursday, Moody’s joined the rating companies downgrading PG&E’s own credit to junk.
The downgrade is just the latest indication that PG&E’s financial woes are spreading to the companies that supply its energy. Banks are also studying whether they’re willing to put assets into a geothermal project that supplies the utility, people familiar with the situation say, and some small natural gas suppliers are restricting sales to the company out of fear that they won’t get paid.
Bloomberg
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