US and Canadian electric, gas and water utilities, power producers and energy traders raised approximately $18.92 billion in securities in January, according to S&P Global Market Intelligence data. The total represents a year-over-year increase of 110.69%, from the $8.98 billion raised in January 2023.
As of the end of January, the sector's financing total consisted entirely of debt securities.
Utility, independent power producer segments start 2024 mixed but mostly higher
Two of the three covered utility segments recorded year-over-year increases in capital raised through January. The electric utilities segment raised $12.99 billion, up 80.16% from the amount raised in the same time frame in 2023. Natural gas utilities raised $300 million, compared to the $250 million raised in January 2023. On the other hand, multi-utilities raised $1.23 billion, down 20.1% year over year.
Renewable electricity producers raised $4.40 billion, up from the $1 million raised in January 2023, according to S&P Global Market Intelligence data.
Largest offerings in January
The sector completed 33 senior debt transactions in January. NextEra Energy Inc. subsidiary NextEra Energy Capital Holdings Inc. had the largest issuance for the month with the sale of $4.4 billion of securities. The company sold $1 billion of 4.95% debentures due January 2026, $900 million of 4.90% debentures due March 2029, $1.1 billion of 5.25% debentures due March 2034, $800 million of 5.55% debentures due March 2054 and $600 million of floating-rate debentures due January 2026.
NextEra Energy will use the funds for corporate purposes, including providing funds to its subsidiaries, repurchasing common stock and repaying, redeeming or repurchasing debt or equity issued by its subsidiaries. NextEra Energy Capital uses its general funds for corporate purposes, including to repay short-term borrowings and to repay, redeem or repurchase debt.
Berkshire Hathaway Energy subsidiary PacifiCorp sold $3.8 billion of first mortgage bonds comprising $500 million of 5.10% bonds due 2029, $700 million of 5.30% bonds due 2031, $1.1 billion of 5.45% bonds due 2034 and $1.5 billion of 5.80% bonds due 2055. The company plans to use the net proceeds to fund capital expenditures and for general corporate purposes.
Edison International subsidiary Southern California Edison Co. issued $500 million of 4.875% first and refunding mortgage bonds series 2024A due 2027 and $900 million of 5.20% first and refunding mortgage bonds series 2024B due 2034. Proceeds will be used to fund the payment of wildfire claims and related expenses above the amount of expected insurance proceeds, to repay commercial paper borrowings and for general corporate purposes.
Other notable issuers for the month included Duke Energy Corp., National Grid PLC subsidiary Niagara Mohawk Power Corp. and Dominion Energy Inc. subsidiary Virginia Electric and Power Co.
– Download a spreadsheet of historical power and gas utilities capital offerings.
– Download an excel template on the global energy aggregate debt maturity profile.
– Analyze more deals and capital raises with the transactions statistics page.
The S&P 500 Utilities index logged a negative return of 8% for the twelve months through Jan. 31, 2024, while the broader S&P 500 index gained 20.8% in the same period.
