Standard&Poor's Ratings Services affirmed its 'A+' underlying rating (SPUR) on the Southern California Public Power Authority's (SCPPA) series 2005 San Juan Power Project revenue refunding bonds. The outlook is stable. The 'A+' SPUR reflects our view of the following credit strengths: The generally strong creditworthiness of the participant cities; Power sales contracts that are "take-or-pay" in nature, unconditionally requiring each city utility system to pay operations and maintenance and debt service on the project as operating expenses, whether or not the plant operates or generates power; The unlimited step-up obligation as required by the take-or-pay contracts in the event that a participant fails to make a payment (however, this obligation is discharged through a budgetary mechanism and not
