S&P Global Ratings removed from CreditWatch Negative three renewable power project entities that sold their output to Pacific Gas and Electric Co.
The entities included in the revisions are: Topaz Solar, which operates the 585-MW Topaz solar farm; Panoche Energy Center LLC, which operates the 412-MW simple-cycle Panoche gas-fired plant; and Crockett Cogeneration LP, which operates the 247.4-MW Crockett Cogeneration gas-fired plant.
The rating agency also affirmed a CCC+ rating on all three operators and assigned developing outlooks to the respective projects' debts.
PG&E and its parent company, PG&E Corp., filed their Chapter 11 bankruptcy reorganization plan Sept. 9 but S&P Global Ratings expects the reorganization plan will not affect these projects' financial performance because the utility "does not propose to modify the terms" of its existing power purchase agreements.
S&P Global Ratings said it could raise its ratings for the projects if the PPA terms in PG&E's bankruptcy plans remain unchanged and it emerges from bankruptcy with a rating above CCC+. But it could lower ratings for the projects if the utility's filing is replaced with a plan in which PPA terms are modified or rejected, which S&P Global Ratings views as unlikely.
Pacific Gas and Electric fully paid Topaz Solar in accordance with the terms of its power purchase agreement for June energy deliveries to the utility.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
