1 / 8

IPED Wind Conference: Debt Panel Santa Fe, NM July 26, 2007

IPED Wind Conference: Debt Panel Santa Fe, NM July 26, 2007. The Rating Agency Perspective. Peter Murphy, Director Standard & Poor’s Public Power Sector Spokesperson. Key Issues. Key Issues. Renewable Energy and Global Warming Project Finance issues “System” debt considerations

deshawn
Download Presentation

IPED Wind Conference: Debt Panel Santa Fe, NM July 26, 2007

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. IPED Wind Conference: Debt Panel Santa Fe, NM July 26, 2007 The Rating Agency Perspective. Peter Murphy, Director Standard & Poor’s Public Power Sector Spokesperson

  2. Key Issues

  3. Key Issues • Renewable Energy and Global Warming • Project Finance issues • “System” debt considerations • Standard & Poor’s wind project ratings • Standard & Poor’s Public Power Ratings

  4. Renewable Energy and Global Warming • Genie is out of the bottle. U.S. regulation likely, extent unknown • Cap and Trade, or Carbon Tax • U.S. utilities targeted. Will the pain be shared. • Ratepayers • Clean Coal Technology, Nuclear • Efficiencies, Demand-Side Management, Conservation • Fuel-Switching • The role of renewables? Wind is the leading choice • Renewable Portfolio Standards • Federal Incentives

  5. Project Financings – Key factors • Contract Structure • Legal • Regulatory Local, State, Federal • Counterparty Contractors, Off-takers • Construction • Technology Evolution, and risk • Operations Wind issues, Equipment • Competitive Exposure Regional pricing • Financial Debt Service Coverage

  6. System Financing Reduces Risk • Pledge of all system revenues • Parity with other generation, transmission, and distribution debt • Wind project scale is minimal compared to total

  7. Rated Wind Projects U.S. • Energy Northwest, WA, 9 Canyon Wind (Phase I, II, III) A-/Stable ** • FPL Energy American Wind LLC BBB-/Stable • FPL National Wind LLC BBB-/Stable • FPL Energy National Wind Portfolio LLC BB-/Stable • FPL Wind Funding LLC (Calif, New Mexico) BB-/Stable Europe • Max Two Ltd. (Breeze One) BBB-/Negative • CRC Breeze Finance S.A. (Breeze Two) BBB/Stable • Breeze Finance S.A. (Breeze Three) BBB/Stable • Alte Liebe 1 Ltd. BBB-/Stable ** rating based on 10 public utilities’ system-wide pledge

  8. Public Power is Solidly Investment Grade(ratings as of July 1, 2007) AA+ 1 (0.4%) AA 24 (10.5%) AA- 31 (13.5%) A+ 53 (23.1%) A 37 (16.2%) A- 50 (21.8%) BBB+ 17 (7.4%) BBB 10 (4.4%) BBB- 5 (2.2%) BB+ 1 (0.4%)

More Related