S&P Global Ratings has raised its issuer credit rating on West Boylston Municipal Light Plant (WBMLP), from "A" to "A+," the Massachusetts Municipal Wholesale Electric Company (MMWEC) reported.

The ratings improvement reflects S&P’s view of WBMLP’s consistently stronger financial metrics, characterized by healthy fixed-charge coverage (FCC) and liquidity, supported by effective cost recovery mechanisms. 

S&P cites a three-year average FCC of 1.5x and strong liquidity. The revenue base is diverse, with rates well below the state average.

Additionally, the rating further reflects several positive factors, including:

•    A diverse power portfolio that includes joint ownership of assets through MMWEC, WBMLP’s joint action agency, and power purchase agreements, with a focus on non-carbon emitting resources such as nuclear, hydro, wind and solar
•    Planned rate increases and regular use of its discretionary power cost adjustment (PCA) mechanism to offset increased costs and unbudgeted power supply costs
•    Low debt burden, with direct debt fully amortized by 2027, and no plans for additional debt issuances in the next few years

With a power portfolio that is currently 59% carbon-free, WBMLP is exceeding the state mandate to be 50% carbon-free by 2030. WBMLP’s social risk factors, including rate competitiveness and affordability, are credit supportive.

"We are incredibly proud of this credit upgrade,” said WBMLP General Manager Jonathan Fitch. “It validates our conservative approach and fiscal management of ratepayer funds. We will continue to demonstrate fiscal responsibility and ensure every ratepayer dollar benefits our community.”

“We congratulate West Boylston Municipal Lighting Plant on their rating upgrade to A+ by S&P Global Ratings,” said Haley Pedruczny, MMWEC Treasury and Financial Services Manager. “Achieving a credit rating upgrade in today's uncertain economic environment speaks volumes about the strength of West Boylston's financial management. This is the best of public power — balancing ratepayer affordability with long term financial stability. MMWEC is proud to have West Boylston as a Member and to support that mission through our power portfolio resources and joint ownership opportunities.”

In 1976, through an act of the state legislature, MMWEC became a non-profit, public corporation and political subdivision of the Commonwealth of Massachusetts with the power to issue tax-exempt revenue bonds to finance electric generating facilities and other projects.

MMWEC delivers the wholesale power supply, financial, risk management and other services needed by municipal utilities to participate effectively in today’s electric utility industry, it notes on its website.