Standard&Poor's Ratings Services affirmed its 'A+' rating on Southern California Public Power Authority's (SCPPA) subordinate-lien revenue bonds, issued for the Palo Verde Project. Debt service on the Palo Verde Project bonds is supported by payments made by the 10 California cities that participate in the project. The 10 cities account for all Palo Verde Project costs, including debt service, as operating expenses of their own respective electric systems. The ratings reflect: The credit quality of the California municipal electric systems that are severally obligated to pay the Palo Verde Project debt service; The unlimited step-up nature of the "take-or-pay" purchase-power contracts, which unconditionally require the cities to pay operations and debt service on the project; and The importance
