Texas Power Energy Update: Reliant?

It seems that when Hurricane Ike blew through the Texas coast and pummeled Galveston and Houston, the members of the communities were not the only ones affected. It has been reported that Reliant Energy’s financial outlook has been lowered from stable to negative according to a report by Fitch Ratings, an international financial ratings agency. The fact that Ike cut off power in Houston, which is a large part of Reliant’s customer base is one reason for this decline. Another factor is Reliant breaking off its relationship with Merrill Lynch. After doing so they obtained two new loans for one billion dollars which will cost them more then the loans they had from Merrill Lynch. August was cooler than normal which led to less usage than forecasted which also hampered Reliant’s financial outlook.