US utilities raise $5.88B in February; YTD total reaches $12.13B

This Data Dispatch will be updated throughout 2022 to tally capital offerings in the U.S. utilities industry. Click here for a spreadsheet listing all utility capital offerings since January 2009.

U.S. electric, gas and water utilities, power producers and energy traders raised a total of $5.88 billion in February, bringing total year-to-date capital raises to $12.13 billion, according to data compiled by S&P Global Market Intelligence. The sector raised $9.18 billion during the same period a year ago.

The total included $11.33 billion in senior debt and $805 million in subordinated debt, compared to $9.16 billion in senior debt in the comparable month of 2021.

As of Feb. 28, U.S. electric utilities have raised $11.41 billion, gas utilities have raised $600 million and multi-utilities have raised $125 million. A year ago, U.S. electric utilities had raised $4.28 billion, gas utilities had raised $2.38 billion and multi-utilities had raised $450 million.

In February, the sector completed 13 senior debt transactions. The largest offering for the month came from Pacific Gas and Electric Co., which issued $2.40 billion of first mortgage bonds in four transactions to prepay loans under an 18-month term facility and for general corporate purposes. The PG&E Corp.'s utility subsidiary sold $1 billion of 3.25% bonds due 2024, $400 million of 4.20% bonds due 2029, $450 million of 4.40% bonds due 2032 and $550 million of 5.25% bonds due 2052.

Eversource Energy issued $1.30 billion in senior notes comprising $650 million of 2.90% series V notes due 2027 and $650 million of 3.375% series W notes due 2032. Proceeds will be used to repay at maturity all of the company's outstanding series K senior notes due 2022 and to repay short-term debt.

DTE Electric Co. sold $500 million of 2022 series A 3% general and refunding mortgage bonds due 2032 to repay short-term borrowings and for capital expenditures and other general corporate purposes. It also sold $400 million of 2022 green series B 3.65% general and refunding mortgage bonds due 2052 to finance existing and new qualifying "eligible green expenditures."

Other notable issuers for the month included CenterPoint Energy Inc. subsidiary CenterPoint Energy Houston Electric LLC, Fortis Inc. subsidiary Tucson Electric Power Co., and Exelon Corp. subsidiaries Delmarva Power & Light Co. and Atlantic City Electric Co.

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