FirstEnergy and other utilities warn they could be hurt by tariffs, but analysts see little immediate effect on utility capital expenditure plans.

FirstEnergy and other utilities are warning that Trump administration tariffs on Canada, Mexico and other countries could hurt them, according to risk disclosures included in annual reports filed last month with the U.S. Securities and Exchange Commission.

The alerts on tariffs come as U.S. utilities have been expanding their capital expenditure plans to build transmission lines and power plants to meet rising demand growth, partly driven by data center development.

“Any widespread imposition of new or increased tariffs could have an adverse effect on our results of operations, cash flow and financial condition,” FirstEnergy said in a Feb. 27 filing. “New or increased tariffs could also negatively affect U.S. national or regional economies, which also could negatively impact our business and results of operations.”

Deteriorating economic conditions triggered by tariffs or other causes generally lead to reduced electric use by customers, particularly industrial customers, according to American Electric Power.

“The current administration has implemented tariffs on certain imported goods and may impose additional tariffs,” AEP said in a Feb. 13 filing. “As a result, prevailing economic conditions may reduce future net income and cash flows and negatively impact [our] financial condition.”

Tariffs could disrupt supply chains and delay building, maintaining and repairing infrastructure needed to support operations or are required to execute AEP’s plans for continued capital investment and to transition its generation fleet, the Columbus, Ohio-based utility company said.

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