...S&P Global Ratings affirmed its '##-' long-term rating on the Southern California Public Power Authority's (SCPPA) series 2012A and 2012B Mead-Adelanto Project revenue bonds and Mead-Phoenix Project revenue bonds. The outlook is stable. The rating reflects our view of: + The credit quality of the nine California municipal electric systems, all of which are joint and severally obligated to pay the projects' debt service, and six of which are rated '##-' and collectively represent more than 90% of each project's 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 projects; and + The projects' importance to the participant cities. Partly offsetting the above strengths, in our view, is a rate covenant of minimal sufficiency (1x coverage). The bonds are secured by rates and charges collected by the participants' electric systems in their respective service territories....
