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NEWPORT - Fitch Ratings has affirmed Pend Oreille County Public Utility District No. 1’s long-term credit rating at ‘A’ with a Stable Outlook, in a June 18 rating action commentary.
“The district’s operating risk and financial profile assessments might indicate a higher rating, but the rating is constrained to the ‘A’ category based on the continued long power supply position that must be managed over time, and the district’s limited service area characteristics,” Fitch noted in its commentary.
Fitch Ratings rates entities with AAA, AA, A, BBB, BB, B, CCC, CC, C, RD and D ratings.
The PUD rating applies to $114.9 million in Box Canyon Production System revenue and refunding bonds, $5.2 million in Electric System revenue refunding bonds, and the PUD’s long-term issuer default rating.
Fitch cited the PUD’s consistent financial performance, longterm power sales contracts, and strong liquidity as key factors in its decision. Power sales agreements with Shell Energy through 2025 and with Clark Public Utilities through 2041 provide a stable revenue foundation. These contracts were implemented after the 2020 closure of the Ponderay Newsprint Company, which had been the PUD’s largest customer.
Fitch also reviewed the PUD’s agreement with Cascade Digital Mining, which began operations in 2022. The current short-term contract includes full advance payments and additional financial protections, reducing risk to the utility, the PUD said in a news release.
Fitch said the Cascade contract expires the end of September.
“While the current short-term contract to provide Cascade Digital up to 55 MW expires on Sept. 30, 2025, Cascade Digital has extended its short-term energy contract multiple times and may decide to do so again,” the Fitch commentary noted.
Fitch reported that the PUD’s cash position remains strong, with 414 days of cash on hand at the end of 2024 and no plans for new large debt issuance. Capital investments over the next five years include planned distribution upgrades and two new substations.
“This rating confirms that we’re on a steady and confident path,” said April Owen, Director of Finance for the PUD. “It reflects the work of our team to manage resources responsibly, plan for the future, and maintain financial strength while meeting the needs of our customers.”
The PUD continues to operate with low-cost, carbon-free hydroelectric power.
Fitch’s full credit report can be found at https:// popud.org/top-links/ about-your-pud/financial- information.
