Moody’s Investor Services has confirmed PJM’s Aa2 debt rating with a stable financial rating outlook. The Aa2 rating is one of Moody’s highest rankings.
The Aa2 rating, Moody’s said in a May 21 press release, reflects PJM’s “essential role as one of the largest regional transmission organizations in the United States, with responsibility for operating the high-voltage electric grid and administering wholesale electricity markets across a broad and diverse service territory.”
“This investment-grade rating reflects PJM’s creditworthiness, fiscal integrity, financial management and operating performance,” said Lisa Drauschak, PJM Sr. Vice President, Chief Financial Officer and Treasurer.
In the review, Moody’s said PJM’s rating is supported by:
• FERC formula rates that provide for monthly recovery of operating costs, including depreciation and financing
• PJM’s role as the central counterparty to wholesale electricity market transactions, supported by robust collateral, settlement and lost allocation mechanisms
• The scale, creditworthiness and diversity of PJM’s customer base
• Efficient cash-flow management
