US utilities raise $11.27B in May; YTD total reaches $38.18B

U.S. electric, gas and water utilities, power producers and energy traders raised a total of $11.27 billion in May, bringing total year-to-date capital raises to $38.18 billion, according to data compiled by S&P Global Market Intelligence. The sector had raised $53.24 billion in capital for the same period in May 2021.

The total included $34.72 billion in senior debt, $2.53 billion in subordinated debt and $920 million in common equity.

As of May 31, U.S. electric utilities raised $29.34 billion, gas utilities raised $2.99 billion, multi-utilities raised $2.78 billion, renewable electricity producers raised $1.87 billion and independent power producers and energy traders raised $1.20 billion. A year ago, electric utilities raised $32.75 billion, gas utilities raised $8.71 billion, multi-utilities raised $5.66 billion, renewable electricity producers raised $4.68 billion and independent power producers and energy traders raised $1.44 billion.

In May, the sector completed 21 senior debt transactions. The largest senior debt offering came from Southern Co. subsidiary Georgia Power Co., which issued $1.50 billion of senior notes in two tranches. The securities comprised $700 million of series 2022A 4.70% notes due May 15, 2032, and $800 million of series 2022B 5.125% notes due May 15, 2052. Proceeds from the 4.70% notes will be used to repay all or a portion of $250 million outstanding under an uncommitted credit facility, a $125 million bank term loan and $213 million of the company's commercial paper borrowings. Proceeds from the 5.125% notes will be used to finance eligible projects.

Southern California Edison Co. issued $1.25 billion of first and refunding mortgage bonds, composed of $300 million of series 2022C 4.20% bonds due 2025, $600 million of series 2022D 4.70% bonds due 2027, and $350 million series 2022E 5.45% bonds due 2052. The Edison International subsidiary plans to use the proceeds to fund the payment of wildfire claims above the amount of expected insurance proceeds.

Dominion Energy Inc. subsidiary Virginia Electric and Power Co. sold $1.20 billion of senior notes to repay its short-term debt and for general corporate purposes. The offering comprised $600 million series B 3.75% notes due 2027 and $600 million series C 4.625% notes due 2052.

Other notable senior debt issuers for the month included American Electric Power Co. Inc. subsidiary AEP Texas Inc., Sempra subsidiary Oncor Electric Delivery Co. LLC and Xcel Energy Inc. subsidiary Public Service Co. of Colorado.

Elsewhere, Southern Co. completed a $1.73 billion remarketing of junior subordinated notes. The transaction involved $862.5 million of series 2019A remarketable notes due Aug. 1, 2024, and $862.5 million of series 2019B remarketable notes due Aug. 1, 2027. The company will not directly receive any proceeds from the remarketing but said it will be used to purchase the treasury portfolio.

* 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.

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