Fitch Upgrades Illinois Municipal Electric Agency’s Credit Rating

by Paul Ciampoli
APPA News Director
October 26, 2021

Fitch Ratings recently announced that it has upgraded its assessment of the credit worthiness of the joint action agency that provides wholesale power to 32 municipal electric systems throughout Illinois.

On Oct. 22, 2021, the ratings service upgraded its evaluation of the Illinois Municipal Electric Agency (IMEA) from A+ with a positive outlook to AA- with a stable outlook.

The upgrade reflects the strong long-term financial performance of IMEA and the municipal members that it serves, and places IMEA among the top-rated electric joint-action agencies in the nation. 

In granting the upgrade to AA-, Fitch noted IMEA’s “strong operating risk profile is driven by a low cost burden and diversifying resource base.”

Fitch also noted that IMEA’s wholesale rates have been steady over the past several years and retail rates for the largest members are near the state average and considered very affordable.

IMEA President and CEO Kevin Gaden said the new rating “demonstrates a positive, independent appraisal of our agency’s fiscal policies. IMEA provides our members with an affordable and reliable power supply, while we continue to diversify our resources and manage all the changes in the electric utility industry.”

IMEA is a not-for-profit wholesale power provider comprised of 32 municipal electric systems. Municipal members include Altamont, Bethany, Breese, Bushnell, Cairo, Carlyle, Carmi, Casey, Chatham, Fairfield, Farmer City, Flora, Freeburg, Greenup, Highland, Ladd, Marshall, Mascoutah, Metropolis, Naperville, Oglesby, Peru, Princeton, Rantoul, Red Bud, Riverton, Rock Falls, Roodhouse, St. Charles, Sullivan, Waterloo and Winnetka.