Standard&Poor's Ratings Services assigned its 'AA-' long-term rating to the Southern California Public Power Authority's (SCPPA, or the authority) $40.315 million series 2012A subordinate transmission project revenue refunding bonds (Southern Transmission System, or STS, Project). In addition, we affirmed our 'AA-' long-term rating and underlying rating on the authority's previously issued subordinated transmission project revenue bonds. The ratings reflect our view of: The credit quality of the six California municipal electric systems, which are all rated 'AA-' and which are severally obligated to pay STS project 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 project; and STS' importance as the only
