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How do you play Texas energy transmission companies? My feeling is that all energy companies in the state of Texas that were forced to buy power will be decimated. Brazos Electric Power Cooperative filed for bankruptcy yesterday and Fitch had an A+ rating on the company in Jan 2020.
I'm not really looking at the transmission providers... but I do have some exposure to this event. I currently have a small position with ATO and they just recently filed their quarterly report and addressed the situation basically implying they will be reimbursed and maintained earnings projections. I am currently evaluating my position but I am not sold on dumping immediately. I did dump SPKE but it was only part of a bigger issue with that company.
There was a hearing yesterday with the Texas state senate on the financial implications and the pipes of how ERCOT works as a whole (link below). Overall the expenses incurred were about 1 years worth in 1 month. ERCOT is still short the money for their own bill as they have been short paid by many utility operators.
Funny story from the hearing, one of the energy companies basically said the credit agency that called discussed company financials for a total of 10 mins for their rating decision and did not waste any time. It looks like it's a blanket downgrading on everyone to negative credit watch regardless of merit. I suppose given the egregiousness of the situation and what you just mentioned above it makes sense but....
And a link to the Senate committee hearing was included!
Lets start digging thru the 8-Ks