Two of Edison International's Edison Mission Group (EMG) generation units had their ratings and outlook downgraded by Moody's Investors Service, which cited the prospects for continuing cash flow problems exacerbated by "low energy and capacity prices." EMG's Edison Mission Energy (EME) and subsidiary Midwest Generation Co. were downgraded -- for EME from "B3" to "Caa1" for its senior unsecured notes; from "B2" to "B3" for it corporate family rating; and the outlook was set at negative for both of EMG's independent generators. "The downgrade recognizes the continuing multi-year challenge that EME faces in satisfying state and federal environmental requirements across its generation fleet," Moody's said.
California electricity stakeholders are expecting power supplies throughout the state to be adequate for the summer, based on much higher-than-normal hydroelectric supplies throughout the West, according to an assessment by the California Independent System Operator (CAISO), and an announcement by Sempra Energy's San Diego Gas and Electric Co. (SDG&E) utility. Despite forecasts for a warner summer than last year, SDG&E said its supplies and reserves are adequate, "barring extreme weather conditions." Like CAISO, the Sempra combination utility still urged its customers to conserve energy as much as possible. The grid operator and SDG&E said more than 1,800 MW of new generation resources have been added since last summer, including more than 46 MW of wind and solar power supplies. "The probability of involuntary load curtailments is less than 1%, assuming moderate import levels," said CAISO's assessment.
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