Standard&Poor's Ratings Services assigned its 'A+' rating to Southern California Public Power Authority's (SCPPA) San Juan Power Project revenue refunding bonds, series 2005A, and affirmed its 'A+' underlying rating (SPUR) on the Power Authority's outstanding San Juan Power Project debt. The 'A+' rating reflects: The credit strengths of the participant cities and the "take or pay" power sales contracts, which unconditionally require the cities to pay operations and debt service on the project from operational expenses; The unlimited step-up nature of the "take or pay" contracts, although this obligation is discharged through a budgetary mechanism and not through a direct increase in participants costs; and Strong project performance, including a favorable overall cost of the project. Offsetting these
