Smaller Utilities Most Exposed to California Wildfire Risk: S&P

Small water and sewer utilities in California will struggle to recover after wildfires, especially if they’re near wilderness areas or far from large cities, according to a new report from S&P Global Ratings. After major natural disasters in the state, utilities are typically required to front the costs of repairs and are only reimbursed by the Federal Emergency Management Agency and state government afterward. Utilities in towns that are small or poor, on the edge of flammable wilderness, or far from a major city will have particular trouble in paying for those costs upfront or reestablishing service quickly so they can resume collecting revenue, according to the report by credit analyst Tim Tung.