Morningstar DBRS has published a commentary that I think might interest you: "Can District Energy System Issuers Improve Their Credit Profiles by Lessening Their Environmental Impact?"

District Energy Systems (DES)s generally operate as natural monopolies and provide an essential service to their customers. Customers connected to a DES benefit from high reliability and greater convenience than if they were responsible for providing their own heating or cooling; as well, disconnecting from a DES requires customers to spend significant upfront capital expenditure to acquire their own equipment. Because of these advantages, DESs generally have high customer retention rates, which, in our view, provide DESs with strong credit profiles.

Because energy is one of a DES's largest costs, improving competitiveness could also result in environmental benefits from DESs reducing their carbon emissions. This commentary outlines some technologies that could potentially improve a DES's cost competitiveness and environmental benefits all while improving its credit risk profile.

Summary

CLICK HERE TO READ MORE