Fitch Ratings: EPA’s cyber rules will add financial burden for utilities

According to a release from credit rating firm Fitch Ratings, the U.S. Environmental Protection Agency’s (EPA) requirement that all public water systems incorporate cyber risk and resiliency in their periodic reviews will add an increased regulatory and financial burden that could be even greater for smaller systems and systems with minimal existing cyber infrastructure.

Fitch Ratings says the requirement could have a significant effect on water utilities’ capex budgets, and margins would be pressured if systems are unable or unwilling to pass on the added costs to customers through rate increases.