File Photo
Greer CPW provided the substation (above) and infrastructure at the Greer Inland Port.
Fitch Ratings, in April, continued CPW’s A+ credit rating and revised the utility’s outlook from stable to positive.
“This announcement, along with the Fitch announcement this spring, shows how committed we are to financial stewardship,” Jeff Tuttle, CPW General Manager, said. “Greer is thriving, and we’re glad to be a strong part of its economic growth.”
Tuttle and Chuck Reynolds, CPW Chief Financial Officer, presented the utility’s financial portfolio to rating services in New York City.
“This is more good news for us and our customers,” Reynolds said. “The upgrade reflects conservative financial decision making by our Board and excellent work by our staff over the years,” Reynolds said.
Moody’s issued its rating based on CPW revenue bonds totaling $51.4 million from 2002 to 2007.
Net revenues of the combined gas, electric, water, and wastewater utilities secure CPW’s bonds. No long-term plans to issue more debt were a favorable factor in Moody’s rating.
A strong financial rating means cost savings when CPW goes to the bond market to fund capital projects.
CPW’s status as a “combined utility” gives it a “diverse revenue pledge” and creates stability, according to Moody’s report to the utility.
Moody’s agreed with CPW’s claim of its strong management, healthy debt service coverage and liquidity.
A favorable quality, according to CPW, was the region’s “ongoing modest growth resulting in steady customer base expansion.”
“The upgrade is a result of years of careful planning for the future and intentional financial decisions by the entire CPW team,” Jeff Howell, Chairman of CPW’s three-member Board of Commissioners, said. “We’ve got a great history here, and the Board is committed to providing exceptional services with high reliability while maintaining competitive rates for our customers.”
CPW commissioners issued electric/water/wastewater (4.7 percent) rate increases and approved a multi-tiered employee performance incentive plan for annual raises ranging from 3 – 4.5 percent this year.