With More Utilities Going Bankrupt in Texas, Are Utility Stocks Really Safe?
Earlier this month, Brazos Electric Power Cooperative filed for bankruptcy protection following the impact of recent severe winter storms in Texas. What made this filing notable was that Brazos is the largest and oldest power cooperative in the state. It went from a "financially robust, stable" company before the storms to stressing under the weight of $2.1 billion of bills owed to the state's grid operator following the devastating weather event.
It's the second notable utility bankruptcy in recent years. California-based PG&E (NYSE: PCG) filed for bankruptcy protection following a series of devastating wildfires that hit the state. Extreme weather was the culprit in both cases. It therefore seems as if utility stocks might not be as safe as investors think.
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Source Fool.com
