FORT COLLINS, Colo. -- Standard & Poor's Ratings Services has raised its rating on Platte River Power Authority's senior-lien power revenue bonds to 'AA' from 'AA-' and on its subordinate-lien bonds to 'AA-' from 'A+'. The outlook is stable.
"This is an accomplishment of which Platte River and its owner communities can be proud," said Platte River General Manager Brian Moeck. "No other electric generation and transmission joint action agency (such as Platte River) has a higher credit rating."
"This rating was earned through good fiscal policy, strong operating results, good risk management practices and policies, low-cost and low, stable rates, long-term contracts with our owner communities and a strong board/staff relationship," continued Moeck.
According to Standard & Poor's news release dated August 5, 2005, "Factors supporting the 'AA' rating include efficient, low-cost generating resources that enable the authority to maintain a very competitive wholesale rate for power; the conservative financial and operational policies of the management; and a relatively low debt burden and capital needs that can be addressed mainly with annual cash flows…"
Standard & Poor's continues, "The economies of the member cities have rebounded from the 2001 recession, and exhibit stability and growth of retail activities, energy sales, employment and population. [Platte River's] peak load, which has increased 6 percent annually the past five years, is conservatively forecast to increase by 2.5 percent per year for the next five years. The average retail rates for [the member cities] are very competitive, supported by Platte River's highly competitive wholesale rates."
"The stable outlook reflects the expectation that the authority will maintain its solid financial profile, including strong debt service coverage and liquidity levels," said Standard & Poor's Credit Analyst Peter Murphy. "The outlook also assumes that the authority will maintain very competitive rates while meeting the load growth needs of its four member cities."