||ANAHEIM PUBLIC UTILITIES RECEIVES ONE OF THE HIGHEST CREDIT RATINGS ASSIGNED TO AN ELECTRIC UTILITY IN CALIFORNIA
ANAHEIM, CA (May 27, 2010) -
Moody’s , Standard & Poor (S&P), and Fitch Rating Agencies recently completed credit reviews of Anaheim Public Utilities as part of the utility’s participation in the Canyon Power Project, a 200-megawatt generating facility financed through the Southern California Public Power Authority. The three rating agencies affirmed ratings of Aa3/AA-/AA-, and with those ratings Fitch also moved Anaheim Public Utilities from a negative to a stable outlook.
“In this current economy, to receive such high remarks and recognition from the rating agencies is a testament to our utility’s structural strength and innovative business plan,” said Anaheim Mayor Curt Pringle.
In their credit reports, Moody’s, S&P, and Fitch recognize Anaheim Public Utilities for having:
- a strong working relationship with its City Council
· a deep and diverse economic base
· a mature blend of industrial, commercial, and residential development
· a diverse power portfolio with a growing renewable energy component, which is achieving and exceeding renewable energy goals
The rating agencies have long recognized the City and its overall economic strength as a driving factor for the excellent ratings the electric utility received.
“Anaheim Public Utilities itself is widely recognized for having very competitive rates compared to neighboring investor-owned utilities” (Moody’s), and Anaheim Public Utilities’ residential retail rates “are among the lowest of any municipal utility in Southern California” (S&P). Anaheim Public Utilities maintains rate-setting authority and thus is able to conservatively manage finances with “implemented sound risk management procedures” (Moody’s).
The Canyon Power Project definitely benefitted from these positive ratings—as the Canyon Power Project bonds recently sold at an amazing overall interest cost of 3.91%, the lowest cost ever achieved by Anaheim for 30-year money. Moody’s and S&P, in particular, recognized the value of a local power resource for Anaheim Public Utilities. As described by S&P, The Canyon Power Project will provide “firm capacity and energy to help meet its native load requirements, reduce market dependence, reduce California Independent System Operator local capacity requirement fees, provide quick-response ability to meet changes in customer demand, and provide reliable firming of wind and hydro resources.”
ABOUT ANAHEIM PUBLIC UTILITIES For more than 100 years, Anaheim Public Utilities has served Anaheim water and electric customers with low rates and reliable service. Anaheim Public Utilities is Orange County's only publicly owned water and electric utility.
ABOUT ANAHEIM The City of Anaheim, founded in 1857, is one of the nation's premier municipalities and is California's 10th most populous city. Anaheim covers 50 square miles with more than 345,500 residents and more than 2,100 City employees. The municipal corporation's annual budget is $1.3 billion. Anaheim supports a thriving business community with companies such as CKE Restaurants, Inc., L-3 Communications, Pacific Sunwear, and Disneyland Resort. Successful sports franchises call Anaheim home, including Angels Baseball, Anaheim Ducks, Anaheim Arsenal, and the 2008 Olympic Gold Medal winning USA Men's Volleyball team. Anaheim also boasts world-class meeting and entertainment venues with the Anaheim Convention Center, the largest on the west coast, Honda Center, The Grove of Anaheim, Anaheim GardenWalk, and Angel Stadium of Anaheim. Annually, Anaheim welcomes millions of visitors to the city, truly making it where the world comes to live, work and play. For more information, please visit www.anaheim.net.