Summary: Southern California Public Power Authority; Joint Criteria; Wholesale Electric

S&P Global Ratings placed on CreditWatch with negative implications its 'AA-' long-term rating and underlying rating (SPUR) on the Southern California Public Power Authority's (SCPPA) revenue bonds outstanding and its 'AAA/A-1+' dual rating on SCPPA's series 2020-3 refunding revenue bonds. All bonds were issued for Magnolia Power Project A. The bonds are secured by payments received by SCPPA pursuant to five power sales contracts between SCPPA and the Project A participants. Contract payments will cover operating costs and debt service, and will be made on a take-or-pay basis such that payments will not be reduced even if the project is inoperable. Each member is obligated to step up to cover any defaulting participant's share, but step-up payments are limited to

...S&P Global Ratings placed on CreditWatch with negative implications its '##-' long-term rating and underlying rating (SPUR) on the Southern California Public Power Authority's (SCPPA) revenue bonds outstanding and its '###/A-1+' dual rating on SCPPA's series 2020-3 refunding revenue bonds. All bonds were issued for Magnolia Power Project A. The bonds are secured by payments received by SCPPA pursuant to five power sales contracts between SCPPA and the Project A participants. Contract payments will cover operating costs and debt service, and will be made on a take-or-pay basis such that payments will not be reduced even if the project is inoperable. Each member is obligated to step up to cover any defaulting participant's share, but step-up payments are limited to 35% of the nondefaulting participant's share. The power sales agreements and the series A indenture govern step-up payments. The ratings reflect our view of the strong credit quality of the participants, and the requirement of...

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