This is an outsiders opinion and rating of the overall situation at WAPA that is fairly accurate in reporting and easy to understand.
"system energy requirements declined 11% for the period 2008 through 2012, largely due to retail conservation efforts driven by the increasingly high cost of electricity"
I think part of the reduction in energy requirements mentioned here in the article are from customers changing to renewable energy.
And those of us that cannot afford to switch from WAPA to renewable energy?
I've calculated that my solar system will pay for itself in less than 3 yrs after tax credit. This was doing the leg work and permitting myself and shopping for the best prices on hardware and installation. After that is pure gravy. I would definitely consider a short term loan if needed to finance it. The way I looked at it was,..... I couldn't afford NOT to switch.
The reason WAPA is not bankrupt is the fact that they charge over 50 cents a KWh:-o How many businesses have they bankrupt or forced to close due to these crazy high rates??:-(
WAPA officials must have pulled the wool over the eyes of ratings agency. Maybe they forgot to mention how many companies and home owners are switching to renewable energy. The only future I'd like to see for WAPA is bankruptcy.
Wool pulled over eyes and ears. Fitch should be ashamed.
1) "system energy requirements declined 11% for the period 2008 through 2012, largely due to retail conservation efforts..."
What about the closure of Hovensa? Suspiciously missing from the narrative.
2) WAPA deliquency on debt to Hovensea also missing.
3) Narrative cites transition to LPG in the near future...THIS IS NEWS!
4) The ONLY reason BB- is the fact that the feds would never allow a wholesale colasp and the resulting disaster for 100,000 Us citizens.
Who the heck is running analsys at Fitch, summer inters?
I don't think the recent trend toward alternative energy has impacted WAPAs production....YET.
But that will change was more commercial facilities go alternative. Check out NRG and Starwood's solar leasing venture on STJ.
While not a big fan of starwood, I will give them a thumbs up for understanding that "green" is more than marketing ploy... True sustainable solutions save $$ too.
Rather than purchsing WAPA bonds, well capitalized investors should review solar leasing opportunities.