Julian James, an investment grade utilities analyst specializing in regulation, finance and risk, walks through how regulatory frameworks shape utility credit quality. He covers assessing state regulators, AI/data center-driven demand and transmission needs. Topics also include financing the capex wave, wildfire risk and where investors can find value in utilities.
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insights INSIGHT
Regulation Determines Utility Credit Quality
Regulation is the primary driver of utility company quality and predictability of allowed earnings.
Julian assesses jurisdictions by political risk, recovery mechanisms, and whether regulators are elected or appointed to rank them above/average/below average.
insights INSIGHT
Data Centers Create A Major Utility CapEx Inflection
Data center growth creates meaningful electricity demand and rate base expansion opportunities for utilities.
Utilities must build transmission and new generation to connect hyperscalers, creating investable capex projects tied to data center locations.
volunteer_activism ADVICE
Ring Fence Customers To Reduce Political Risk
Protect affordability to avoid political backlash when funding data center connections.
Ring-fence existing customers and work with regulators because higher bills have already changed gubernatorial and regulator races.
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Fixed income investment analyst Julian James discusses the prospects for investment grade US utilities. Julian outlines why regulation is the key driver of quality for companies in this space and how he sifts through such a large sector to find the most attractive opportunities for portfolios. #CapGroupGlobal
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