FORT COLLINS, Colo. -- Moody's Investor Service has upgraded its rating on Platte River Power Authority's revenue and subordinate lien bonds to 'Aa2' and the outlook is stable.
"This is another accomplishment of which Platte River and its owner communities can be proud," said Platte River General Manager Brian Moeck. "Just this August, Standard & Poor's upgraded Platte River’s senior- and subordinate-lien bonds."
"This rating was earned through low wholesale rates, a diverse customer base, strong management and the credit strength of our owner communities," continued Moeck.
"The rating is the highest for a joint power agency," states Moody’s.
According to Moody's news release dated October 5, 2005, strengths of the company supporting the 'Aa2' rating include "… positioned well to meet future expected load growth in the growing service area, wholesale rates to the member cities are very low…with average retail rates of the cities very competitive with rates in the surrounding area, and strong company management"
Moody's believes Platte River's rates will remain competitive in the medium term given its low cost of production. "Prior to 2004, the average rate that Platte River charged its member cities remained unchanged since 1984."
"The outlook is stable, reflecting Moody's expectation that the utility will continue to provide competitively priced wholesale power while maintaining large cash balances, low debt levels, satisfactory debt service coverage and successfully meeting the challenge of increasing loads, as it has historically done," said Moody's.
Platte River Power Authority generates reliable, low-cost and environmentally responsible electricity for use by its owner communities of Estes Park, Fort Collins, Longmont and Loveland since 1973. Platte River's facilities are located along the Front Range, in northwestern Colorado and near Medicine Bow, Wyoming.