Power Co-Op Gets Bond Rating Upgrade After Exiting Kemper Deal
Kemper, MS -
Cooperative Energy and its 11 co-op members will see lower debt costs on $35.4 million bond;
Bailing out of its 15 percent ownership stake in Mississippi Power’s Kemper gasification plant has helped Hattiesburg-based Cooperative Energy gain a ratings upgrade on a $35.4 million bond issue.
The electric power co-op, which changed its name to Cooperative Energy from South Mississippi Electric Power Association in November, received a ratings upgrade from A- to A for its 2009 2009A Mississippi Business Finance Corporation Gulf Opportunity Zone Bonds.
“This rating upgrade reflects the success of our strategy to move from purchased power to owned generation resources, and from coal to natural gas and renewable energy,” said Cooperative Energy President/CEO Jim Compton in a press release. “The result for our members is lower borrowing costs and more favorable rates.”
An “A” rating from Fitch designates the bond issue as “near premium quality.”
Related News
EVs could drive 38% rise in US electricity demand, DOE lab finds
WASHINGTON - Utilities have struggled with flat demand for years, but analysis by the National Renewable Energy Laboratory predicts steady growth across the next three decades — largely driven by the adoption of electric vehicles.
The study considers three scenarios, a reference case and medium- and high-adoption electrification predictions. All indicate demand growth, but in the medium and high scenarios for 2050, U.S. electricity consumption increases by 20% and 38%, respectively, compared to business as usual.
Utilities could go from stagnant demand to compound annual growth rates of 1.6%, which would amount to sustained absolute growth of 80 terawatt-hours per year.
"This unprecedented…
