Fitch Ratings: WOTUS credit neutral

According to Fitch Ratings, the potential repeal of, or change to, the Waters of the United States rule (WOTUS) would be largely neutral for Fitch-rated public utilities in the near- to mid-term as they are already subject to water regulations outlined by the Clean Water Act (CWA) and their capital improvement programs typically incorporate costs to meet federal water quality standards.

However, WOTUS was created in part to mitigate potential long-term water pollution risks by expanding the scope of water bodies that could be subject to CWA regulations, many of which are upstream from public fresh water sources. Thus, utilities could see eventual and costly pollution abatement and treatment programs should upstream pollution compromise these resources.