Fitch Ratings agency, which assigns ratings to organizations that issue bond debt, has assigned an AA rating to the new bond debt. AA is a very high rating and is based on Utilities' solid financial performance, reliable revenue stream from all four services (water, wastewater, gas and electric) and its "self regulating authority (or local rate setting ability)."
"This regulatory autonomy provides for a more timely recovery of costs (operating and debt service) through electric rates, and also gives public power issuers the ability to set financial targets/policies as well as renewable energy goals/standards," The Business Wire website also said. "In addition, public powers predominantly residential customer composition provides for more stable energy sales and in turn more predictable financial performance."
The debt will fund portions of the Southern Delivery System pipeline's construction and refund existing bonds, as well as pay for other projects.