Standard&Poor's Ratings Services assigned its 'AA-' underlying rating (SPUR) to Southern California Public Power Authority's (SCPPA, or the authority) previously issued $79.8 million series 2001A subordinate transmission project revenue refunding bonds (Southern Transmission System, or STS, Project). The outlook is stable. The rating reflects our view of: The credit quality of the six California municipal electric systems, which are all rated 'AA-' and which are severally obligated to pay STS project debt service; The unlimited step-up nature of the take-or-pay transmission service contracts, which unconditionally require the cities to pay operations and debt service on the project; and STS' importance as the only route by which energy from the Intermountain Power Project (IPP), a coal-fired generation facility in
