The rating on Tenaska Washington Partners (TWP) L.P.'s $30 million (as of March 31, 2010) first mortgage bonds due in 2011 is 'BBB'. The outlook is stable. Tenaska Washington's Ferndale cogeneration project is a 270 megawatt (MW) facility near Ferndale, Wash., that sells power exclusively to Puget Sound Energy (PSE; BBB/Stable/A-2) under a power purchase agreement (PPA) whose primary term expires Dec. 31, 2011. PSE is the project's principal gas supplier, thus taking on all fuel-price and fuel-supply risk. The project's economics mainly rely on energy revenue generated from the PPA. The project's economics have benefited recently from displacement revenue that is earned when both parties agree to use power from less expensive sources and share the variable cost savings....
Companies mentioned in this report are:
- Mitsubishi Corp.
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