KBRA Releases Research – Municipal Utilities’ Carbon Free Goals and Countervailing Forces

NEW YORK–(BUSINESS WIRE)–#KBRA–KBRA releases research that examines the carbon reduction efforts of two of the nation’s largest municipal utilities: the Los Angeles Department of Water and Power (LADWP) and San Antonio’s CPS Energy. While LADWP’s carbon reduction plan is the more ambitious and costlier than CPS Energy’s, the utilities share similar guiding principles mandated by their governing bodies and other stakeholders, with particular emphasis on reducing carbon while maintaining system reliability and rate affordability. These mandates, however, can conflict with carbon reduction efforts and may restrict plans that are too costly.

Key Takeaways

  • The goals and timing of municipal utilities’ carbon reduction plans can shift as circumstances change and utilities incorporate political and other stakeholder input.
  • Carbon reduction goals can conflict with the objectives of maintaining system reliability and affordability, meaning plans must undergo continual review and updates.
  • A common feature of the carbon reduction efforts across municipal utilities is that they are dependent on many of the same variables including continued technological developments, increased demand response management, and broader customer participation.

Click here to view the report.

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KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.


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