The joint powers authority financing arm for public power in Southern California received another “AA-” credit rating from Standard & Poor’s Ratings Services (S&P) for its $511.5 million revenue bonds. Proceeds from the bond sales will be used to fund an aggressive long-term natural gas purchase program for five munis, including the Los Angeles Department of Water and Power and Southern California Public Power Authority (SCPPA), which will use the proceeds to acquire a 30-year natural gas supply from J. Aron Co. including five nearly identical prepaid gas sales agreements with the SCPPA municipal utilities involved. The bonds are expected to be priced soon with Goldman Sachs as the sole manager. S&P noted that the stable outlook reflects the outlook on Goldman Sachs. Fitch Ratings gave the offering a stable outlook last week (see Daily GPI, Oct. 1).

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