S&P turns Enmax view to negative

S&P said it changed the outlook on Enmax Corp. to negative from stable, reflecting weak financial measures and regulatory uncertainties that could hurt its financial recovery.

“We believe that recovery of financial performance in 2022 and beyond depends on several key regulatory decisions, some of which could be challenging. Specifically, Versant, the operating subsidiary of Enmax in Maine, recently filed for a $21.5 million, or a 25% increase to its electric distribution tariff effective November 2021 over a two-year period. Although Versant has not had a rate increase since 2018, the size of this rate request suggests increased regulatory risk,” the agency said in a press release.

The company also faces some regulatory uncertainty on its rates in Alberta.

“The negative outlook on Enmax reflects our expectation of the company's weak financial measures with FFO to debt of about 11%-11.5% in 2021, and about 12%-13% for 2022-2023,” the agency said.

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