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California Municipal Utilities Maintain Good Credit Quality Despite Regional Turmoil Mar 02
Standard & Poors, March 2002
Abstract
Municipal electric utilities in California have maintained strong credit ratings over the past two years despite the turmoil in western power markets that sent electric prices skyrocketing beginning in the spring of 2000. Municipals fared well financially and operationally, due in a large part to their exclusion from the requirements of AB 1890, the 1996 California legislation that began the transition to a deregulated retail electric market in the state in 1998. Municipals, unlike the three investor-owned utilities in the state, continued to operate as vertically integrated utilities that provide about 25% of California's load. By continuing to invest in infrastructure, they avoided any shortfall in generation resources needed to serve native load. Ratepayers enjoyed cost-based rates for the power...
Companies mentioned in this report are: Los Angeles Dept of Wtr & Pwr,Sacramento Mun Util Dist,Southern California Home Fin Auth,Pacific Gas & Electric Co.,Enron Corp.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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