Logic suggests that would push utilities to spend less in order to preserve their bottom lines, in light of recent changes stemming from the tax reform bill. However, recent research out from the credit rating agency Moody's suggests that utilities aren’t drawing down capital expenditures in the near term. In fact, emphasis on grid reliability and renewables means utility capital spending will stay relatively flat and “exceed historical levels” into 2020.
Why Utility Spending Continues at Historic Highs, Despite Headwinds
The regulated utility sector is on rough financial footing, but its spending remains high.