Cash Is King...Yet Again

The energy transition has put power utilities on an unprecedented growth trajectory. With resource adequacy as one of the top challenges, capital spending is increasing faster than ever before in this century. CFOs across the industry consider various sources of capital to fund the growth but utility executives across the industry are uneasy given growing borrowing costs. Hence non-standard sources of capital gain popularity such as unregulated asset divestments and minority stake sales in core operations. We would like to explore a few more options available in the CFO toolkit before tapping into the equity markets.

The most effective way to increase cash is to...stop spending