Summary: Southern California Public Power Authority; Wholesale Electric

S&P Global Ratings Services assigned its 'AA-' long-term rating to the Southern California Public Power Authority's (SCPPA, or the authority) proposed $26.3 million series 2020A revenue refunding bonds, being issued for the Tieton Hydropower Project. At the same time, we affirmed our 'AA-' long-term rating on SCPPA's series 2010A and 2010B revenue refunding bonds, also issued for the Tieton Hydropower Project. The outlook is stable. The 'AA-' ratings reflect our opinion of: Take-or-pay contracts with project participants that unconditionally require the cities to pay operating costs and debt service on the project, even if the project is not operating; The strong credit quality of the participants' electric systems (Burbank at AA-/Stable; Glendale at AA-/Negative); and Power sales agreements that contain

...S&P Global Ratings Services assigned its '##-' long-term rating to the Southern California Public Power Authority's (SCPPA, or the authority) proposed $26.3 million series 2020A revenue refunding bonds, being issued for the Tieton Hydropower Project. At the same time, we affirmed our '##-' long-term rating on SCPPA's series 2010A and 2010B revenue refunding bonds, also issued for the Tieton Hydropower Project. The outlook is stable. The '##-' ratings reflect our opinion of: + Take-or-pay contracts with project participants that unconditionally require the cities to pay operating costs and debt service on the project, even if the project is not operating; + The strong credit quality of the participants' electric systems (Burbank at ##-/Stable; Glendale at ##-/Negative); and + Power sales agreements that contain 100% step-up provisions, requiring the nondefaulting participant to increase its obligation by 100% on the failure of the other participant to make its share of payments. The ratings...

Summary