
Fitch Ratings assigns a rating of 'A+' to
Wisconsin Public Power Inc. (WPPI) $234.685 million power supply system revenue bonds, series 2008A. Fitch also affirms the 'A+' on WPPI's outstanding power supply revenue bonds.
The 'A+' rating reflects WPPI's experienced management team which has the support of its growing member and non-member base. While there is some concentration among the largest industrial customers of the members (with the four largest accounting for 16% of energy requirements), helping to offset this is that many of the large customers have entered into long-term purchase power contracts with WPPI and its members, and more important, WPPI's competitive advantage - rates that are lower than those charged by the locally serving investor-owned utilities. Financial operations have been solid and projections show targeted debt service coverage of 1.25 times (x) through 2017, in line with other 'A+' rated systems. Another positive attribute is WPPI's power resource mix, which is diverse with sufficient capacity into 2017. The terms of the various power purchase contracts provide WPPI further flexibility.