Debt Exposure Tracker: Now I Am Become Interest Expense, Destroyer of Parent EPS

With elevated attention on today's rising cost of capital backdrop, we refresh our utility holdco debt analysis tracker to more closely quantify each utility's exposure to potential interest rate headwinds. Across our coverage, we track a fairly wide range of exposure to refinancing headwinds (with illustrative EPS impacts ranging from zero to a 4.0% high as a percentage of 2030 EPS), with a -1.1% median drag in our scenario analysis (at the midpoint of our 6.00-6.50% refinancing range). Overall, based on available disclosures, we highlight 1) FE, ES, and WEC screen as most exposed to refinancing headwinds, 2) SR and ES carry the most sensitivity to a 100bp rate move on total holdco debt (asset sale dependent), and 3) WEC screens as having a relatively higher portion of holdco debt maturing through 2030. On the flip side, ED, MGEE, and SWX stand out as some of the more insulated names to interest rate risk given zero parent debt profiles, which remain differentiated to peers. After ED,