The 'AA-' Standard&Poor's underlying rating (SPUR) on Southern California Public Power Authority's hydroelectric power project revenue bonds (Hoover Uprating) reflects: The credit strengths of the participant cities and the take-or-pay power sales contracts, which unconditionally require the cities to pay operations and debt service on the project from operational expenses; The unlimited step-up nature of the take-or-pay contracts, although this obligation is discharged through a budgetary mechanism and not through a direct increase in participants' costs; The very low-cost power the project provides the participants; The fractional amount of power each participant derives from the project, indicating an absence of concentration risk; and The tiny percentage of budgeted expenses that debt service for the project represents to each
