Finance

“A central concern for regulators is that existing cost allocation frameworks are ill-suited for such sudden spikes in capacity needs, creating a risk of unwarranted subsidies from existing customers to data centers.”

“At a high level, SURFA aims to discuss the concepts, industry practices, and application of financial concepts within the energy industry, including rate of return and different forms of cost of capital.”

“Unlike policy-driven incentives of the past, today’s growth is market-driven – anchored in the real needs of hyperscalers, utilities, and consumers. This provides a stronger and more sustainable foundation for long-term investment.”

“Given the rapid periodicity of change in the larger ecosystem, navigating the investments in the energy sector today is not about eliminating uncertainty – it is about reducing uncertainty through better information, and then developing solutions that are resilient to a variety of future outcomes.”

“I think we’re going to see a lot of portfolio shifts versus full company deals in the near term.”

Panelists brought together by University of Missouri’s Financial Research Institute included Big Rivers Electric Corp. CFO Talina Mathews, Energize Strategies Founder Ted Thomas, NASUCA Executive Director David Springe, and Federal Reserve Bank of St. Louis Lead Economist William Emmons.

“We’re targeting carbon reduction and that could incent deals. The other side of that is, it seems the bar continues to get raised in how deals will be evaluated and the scrutiny they’ll be under given ESG goals.”

How do you treat excess deferred taxes? Congress explained it, but there are disputes at the state level, and FERC has its own issue, which is related.

The financial community as a group has not yet moved toward aggressive adoption of socially responsible investing. The utilities sector will need to be creative in future capital sourcing given its massive future capital needs for deployment to clean technologies, grid and network modernization, and digitalization.