When a public utility declares bankruptcy, tensions can arise between the functions of state regulators, who oversee utilities, and bankruptcy courts, which seek to offer debt relief. Researchers expect that the strain on utilities will increase as climate change makes weather worse, possibly upping the number of bankruptcies those companies file. Recent years have seen several newsworthy bankruptcy filings, including one of the largest investor-owned utilities companies in the country after the 2019 California wildfires, as well as several companies in Texas after the 2021 cold snap.
Key Takeaways
- When a public utility declares bankruptcy, tensions can arise between the functions of state regulators, who oversee utilities, and bank…
Read the full article at: https://www.investopedia.com/when-a-utility-goes-bankrupt-5195318
