.png)
NEWPORT - Moody’s Ratings, a nationally recognized credit rating agency that evaluates the financial strength of organizations such as public utilities, local governments, and other entities, has upgraded Public Utility District No. 1 of Pend Oreille County’s (PUD) Electric and Box Canyon Dam bond ratings from A3 to A2. The stable outlook is an important indicator of the utility’s improved financial strength and long-term planning.
A higher bond rating helps the PUD borrow money at lower interest rates, which can reduce costs for customers over time, and is an important indicator for the PUD’s power trading partners.
Moody’s cited the PUD’s long-term power sales agreement with Clark Public Utilities as a key reason for the upgrade. Under the agreement, Clark PUD will purchase all power generated by Box Canyon Dam through 2041, providing predictable revenue and reducing financial risk tied to power markets and water conditions.
“This agreement significantly reduces risk for the utility while supporting strong and stable financial performance,” Moody’s said in its announcement, pointing to the district’s strong cash reserves, conservative and disciplined management and valuable carbon-free hydropower assets.
The upgrade also marks an important milestone following financial challenges caused by the closure of Ponderay Newsprint Company in 2021, which was one of the county’s largest power users. Since that time, the PUD has taken steady, deliberate steps to strengthen its financial position, manage risk, and rebuild credit strength.
“This upgrade shows the progress we’ve made the last several years and confirms that our longterm contracts, careful planning, and focus on financial stability are benefiting our customers,” said April Owen, Director of Finance for the PUD in a PUD news release announcing the upgrade. “It positions the PUD to manage costs responsibly while continuing to invest in safe, reliable service for our community.”
Moody’s full credit report can be found at popud.org/ top-links/about-your-pud/ financial-information.
