S&P Global Ratings affirmed its 'AA' rating on Tacoma, Wash.'s electric system revenue bonds. The outlook is stable. Tacoma pledges the electric system's net revenue to the bonds. At fiscal year-end 2021, the system had $540.2 million of electric system debt outstanding. The rating reflects Tacoma's size, scale, and diverse customer base; and its ability to maintain healthy coverage and liquidity through various hydrological and economic conditions. This is tempered by concentration in hydroelectric generation; surplus sales risks in the wholesale power market; and economic challenges for the utility's residential customers, reflected by $20 million (5% of retail revenue) in delinquent accounts. The rating further reflects our view of Tacoma's credit strengths: Stable retail demand from a sizable service area
