California Power Exchange Receives First Moody's Investor Service Rating.ALHAMBRA, Calif.--(BUSINESS WIRE)--Nov. 2, 1998--The California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Power Exchange (CalPX) has received a short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. issuer rating of Prime-1 with a stable outlook by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. as its initial rating, George Sladoje, CalPX chief executive officer, announced today. "We are extremely pleased that Moody's has recognized our low financial risk due to stringent credit management practices and the pooling of risk through a large and efficient statewide electricity market," Sladoje said. "The savings achieved through reduced credit service costs will be used to help CalPX reduce costs for market participants The term market participant is used in United States constitutional law to describe a U.S. State which is acting as a producer or supplier of a marketable good or service. When a state is acting in such a role, it may permissibly discriminate against non-residents. and, ultimately, California electricity consumers," he said. In setting the rating, Sladoje said a key consideration for Moody's was the fact that California's three largest investor-owned utilities will continue to be major CalPX participants throughout the state's energy competition transition period, which extends until 2002. As part of its credit management program, CalPX requires both buyers and sellers in its Day-Ahead and Hour-Ahead electricity markets to maintain a Prime-1 or equivalent short-term rating, or provide specific credit support. Forms of credit support include an appropriate letter of credit, surety bond surety bond An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced. , cash collateral or parental guarantee from a guarantor guarantor n. a person or entity that agrees to be responsible for another's debt or performance under a contract, if the other fails to pay or perform. (See: guarantee) GUARANTOR, contracts. He who makes a guaranty. 2. having a Prime-l or equivalent rating. CalPX was established by California legislation to serve as a non-profit public benefit corporation to operate the state's deregulated energy market. Since March 31, CalPX has conducted daily auctions for buyers and sellers of electricity in California. |
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