When States told utilities to stop disconnecting customers for non-payment, the fear of a sharp rise in bad debt was mentioned by many Investor Owned Utilities (IOUs).
We think the relatively low rates of historic bad debt plus many policies (existing and planned) will protect shareholders from higher bad debt expense by shifting the risk and costs to those customers who can pay their bills.
By refinancing existing debt at historically low interest rates not seen since the 1930's, cash flow and income could experience a significant boost many times the size of bad debts generally seen in recent years.
How much can be saved? Read the report.