Snohomish County PUD’s Bond Ratings Upgraded By S&P Global Ratings

by Paul Ciampoli
APPA News Director
March 21, 2022

Washington State-based Snohomish County PUD’s electric and generation system revenue bond ratings were recently upgraded from AA- to AA by S&P Global Ratings.

According to S&P, the rating upgrade reflects the agency’s positive view of the PUD’s diverse and reliable power portfolio and retail revenue base that proved resilient during the pandemic.

S&P cited several key factors for the PUD’s upgraded bond rating in its report, including:

• The PUD’s largely residential retail venue base, good customer diversity and above-average median household income give it a robust service area with economic fundamentals.
• A low-cost, non-carbon-emitting power supply, prudent rate-setting practices, and sound management, policies and planning.
• Rates that are generally in-line with the state average and moderate ratemaking flexibility.
• Current system debt that is modest in addition to flexibility to issue additional debt.

Recent decisions by the PUD’s Board of Commissioners to increase rates and support the need for solid financial reserves were also factors in S&P’s decision to upgrade its bond rating.

S&P also cited the PUD’s Integrated Resource Plan, which was adopted in 2021, and the county’s strong economic stability as mitigation to exposure and risk of climate change and evolving regulatory environment around fish and wildlife and clean energy.