The Public Power Generation Agency (PPGA), which includes the Municipal Energy Agency of Nebraska and four other electric utilities, recently completed a bond refunding on the Whelan Energy Center Unit 2 project located near Hastings, Neb.
Fitch Ratings assigned an ‘A’ rating to PPGA’s Whelan Energy Center 2026 Series A Bonds and affirmed an ‘A’ rating with a stable rating outlook on PPGA’s outstanding bonds. Moody’s Investor Service assigned and affirmed PPGA’s bond rating at ‘A2’.
The approximately $85 million bond issue refunds outstanding bonds for savings. The transaction is expected to save PPGA member utilities approximately $10.1 million overall, which includes MEAN’s portion of approximate savings of $3.7 million over the life of the bonds for its participating wholesale power communities.
PPGA is a joint action agency created in 2005 for the purpose of owning, financing, acquiring, constructing and operating WEC Unit 2, a 220-megawatt coal-fired power plant. PPGA consists of MEAN, Heartland Energy, Grand Island Utilities, Hastings Utilities and Nebraska City Utilities. WEC 2 began commercial operation in 2011.
In assigning its rating, Fitch cited strong contracts and credit quality of PPGA’s members along with their take-or-pay agreements that extend to the later of the final bond maturity or decommissioning of the project. Also cited was PPGA’s low operating risk assessment, which reflects the unit’s strong operating performance and strong rate flexibility.
