Energy bill to have 'slighty positive' implications: Fitch

Energy bill to have 'slighty positive' implications: Fitch

Washington (Platts)--1Aug2005

Fitch on Monday said that it anticipates the omnibus Energy Policy Act of 2005
likely will not have a negative credit impact and "will have mostly positive
implications for creditors to the sector." 

Few consequences of the bill, which was passed by Congress last week and is
expected to be signed into law by President George W Bush next week, would be
felt in the near-term, Fitch said, but the elimination of the Public Utilities
Holding Company Act of 1935 could be felt about six months after enactment. 

The bill "also presents pockets of future risk for certain industry
participants, such as rising risk associated with mergers and acquisitions and
rising capital spending programs." The electricity title, the first major
overhaul of US electricity policy since 1992, includes the PUHCA repeal, which
"will likely accelerate the trend of utility consolidation," Fitch said. It
said heightened M&A activity and the associated increase in risk for utilities
"will be mitigated by the continuing need for state regulatory approvals and
states' tariff-setting authority.

Read more about the US energy bill at
http://www.platts.com/Oil/Resources/News%20Features/energybill/index.xml.

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.