This Week’s Top 5 Topics
Week of December 28, 2025 through January 3, 2026
1) Year-End Grid Reliability Review: Winter Performance and Early 2026 Readiness
Utilities completed closing out 2025, giving grid operators and state commissions the change to review their winter reliability performance. Some of the categories evaluated included: fuel availability, cold-weather preparedness, and emergency response coordination. All of the early assessments emphasized continued vigilance following the almost unpredictable December weather, as well as the continued rise in winter peak demand.
Why it matters:
Year-end reliability reviews often dictate and influence prudence determinations, future rate recovery, and regulatory expectations for winterization investments in 2026.
2) Natural Gas Market Volatility Carries into the New Year
Natural gas prices continued to fluctuate wildly during the holiday week as the amount of trading volumes remained thin and weather forecasts continued to shift. Utilities continued to monitor supply conditions closely heading into the month of January, known for its sustained cold snaps, which can rapidly escalate fuel costs and customer bills.
Why it matters:
Gas price volatility directly affects fuel adjustment clauses, purchased-gas riders, and affordability narratives, particularly during the first quarter heating season.
3) Utilities Enter 2026 with Elevated Capital Spending Plans
Investor disclosures and regulatory filings highlighted robust 2026 capital expenditure plans across electric and water utilities. Some of the major expenditures include grid hardening, transmission upgrades, data-center-driven load growth, PFAS treatment, and aging infrastructure replacement.
Why it matters:
Higher capex levels intensify scrutiny around rate impacts, cost controls, and financing strategy, making regulatory finance as well as customer communication a central focus surrounding execution.
4) Regulatory Finance Focus: Interest Rates, Credit Metrics, and Securitization
While the markets moved into 2026, utility finance teams assessed interest rate outlooks, credit ratings, and balance-sheet positioning. Securitization and alternative financing structures continued to play a prominent role in discussions around storm recovery, legacy asset costs, and extraordinary expenses.
Why it matters:
Financing choices made in the early part of the year can influence long-term customer bills, credit stability, and regulatory outcomes.
5) Water Utilities Prepare for PFAS Compliance and 2026 Rate Filings
Water systems took advantage of the final week of the year to prepare for PFAS compliance planning, this includes treatment design, funding strategies, and upcoming rate filings. A wide range of utilities signaled that PFAS-related capital and operating costs will increasingly appear in 2026 cases.
Why it matters:
PFAS remains a structural cost driver for the water sector, raising questions around cost allocation, affordability programs, and “polluter pays” policy debates.