Moody’s Ratings Service has assigned an “Aa2” rating, its third highest, to the Los Angeles Department of Water and Power (LADWP) for its planned $500 million revenue bond sale in February. The rating recognizes “strong supportiveness” by Los Angeles elected officials for the nation’s largest municipal (muni) utility, which is shifting from a reliance on out-of-state coal-fired generation sources to more natural gas- and renewable-based power sources. Moody’s said the rating recognizes the benefit of LADWP’s size, “diverse and competitive power supply,” and ownership and operation of a transmission network that amounts to 25% of California’s grid. LADWP has long owned its gas reserves through a purchase it led with other Southern California munis a decade ago.
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