...Garland Power & Light's (GP&L) 'AA-' ratings reflect its very strong financial profile relative to Fitch Ratings' 'aa' Revenue Defensibility and 'aa' Operating Risk assessments for the utility. GP&L's revenue comes from a dedicated service area, and it can independently modify rates. Its highly affordable electric bills also supports its revenue defensibility. The operating risk profile considers the utility's very low operating cost burden, neutral operating cost flexibility and continued capital investments relative to system requirements. GP&L also provides wholesale electric services to other municipal and cooperative utilities. The arrangements lead to potential market and counterparty risks. However, Fitch believes GP&L effectively manages these risks. Wholesale sales are expected to decline materially following the expiration of several short-term contracts over the next two years, which would limit these risks after 2027. Fitch expects GP&L will continue to exhibit a very strong...
