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Grant PUD maintains strong bond ratings
September 14, 2011
EPHRATA, Wash. – Grant PUD bond ratings were reaffirmed by the rating agencies Fitch, Moody’s and Standard and Poor’s. The ratings are AA, Aa3 and AA- respectively.
Following discussion with the commission, Grant PUD General Manager, Tim Culbertson commented, “In rating the utility, both Moody’s and Fitch emphasized the need for our planned rate increases and stressed the importance of increasing revenue to maintain our strong ratings. Commissioners took responsible action in response to the agencies yesterday and adopted an eight percent rate increase for 2012. This action solidifies our financial stability with the agencies as we work towards issuing bonds.”
In early October, Grant PUD will issue Electric System Revenue and Refunding bonds for as much as $160 million. Pricing of the bonds is expected on September 21. Bonds will be available to the public through a retail order period on September 20.
Of the $160 million issuance:
- approximately $60 million will be used to refinance part of outstanding debt from 2001
- $100 million will be used to pay for new construction projects including a new, 230kV transmission line to bring power from the utility’s dams into the county
Prior to and separate from the issuance of the 2011 bonds, the utility will use approximately $53 million of available cash to pay off higher interest rate 2001 bonds.
Information on each agency’s decisions can be found online:
Moody’s
Fitch
Standard & Poor’s
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Grant County Public Utility District is a Washington state municipal corporation that began electric service in 1942. Owned by the people it serves, Grant PUD generates and sells electricity to Grant County residents and millions of customers throughout Central Washington and the Pacific Northwest. The Priest Rapids Project, comprised of Priest Rapids and Wanapum dams, produces nearly 2,000 megawatts of clean, renewable and reliable electricity – enough to supply a city the size of Seattle. A leader in science based technology; Grant PUD is committed to finding effective measures for the protection, mitigation and enhancement of salmon, steelhead and other natural and cultural resources.
MEDIA CONTACT:
Sarah Morford (509) 754-6633 / smorfor@gcpud.org
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