In a report released on April 2, 2020, S&P Global Ratings revised its outlook for North American regulated utilities from "stable" to "negative" due to the risks posed by COVID-19 which will deplete many utilities’ “financial cushions.” [1] Despite this new vulnerability, S&P Global stated that regulated utilities are still in a better position to access credit than most other corporate industries because they sell necessities and receive a rate of return set by regulators, rather than the market. Certain utilities may be more precarious position than others, though, such as those that disproportionately depend upon commercial and industrial (C&I) customers for their revenue.

Beyond the current disaster, according to the report, circumstances like natural disasters and acquisitions had led some utilities to take on even more debt which has negatively affected the utilities’ ability to withstand current events. Some examples include PG&E, Edison International, and Sempra Energy’s issues with wildfires; NiSource Inc., which had to sell Columbia Gas of Massachusetts to Eversource Energy following charges regarding violations of federal pipeline safety laws; and Southern Co., SCANA Corp., Eversource, Duke Energy Corp., and Dominion Energy Inc., which have all been engaged in large capital projects.

[1] https://www.spglobal.com/ratings/en/research/articles/200402-covid-19-the-outlook-for-north-american-regulated-utilities-turns-negative-11415155