Feb. 5, 2024 – LEXINGTON, Neb. “I am pleased to announce that Dawson Public Power District received a significant bond rating upgrade from Standard & Poor’s, moving from an A to an A+,” said Dawson PPD Board President Dan Muhlbach.
“These bond upgrades are difficult to attain, which underscores the board’s commitment to balancing financial responsibility with upgrading the distribution system and keeping rates low.”
He also credits Nebraska Public Power District’s stable wholesale electric rates as part of the success.
General Manager, Gwen Kautz, said “I have to credit the district’s management team for their consistent efforts to control costs over the past few years. It’s been challenging but they have exceeded my expectations.”
In its report, S&P stated, “the district has delivered robust financial performance during the past three years.” It also said that the cancellation of the merger with The Central Nebraska Public Power and Irrigation District did not have a meaningful impact on Dawson PPD’s creditworthiness.
The upgrade in the S&P rating means that Dawson PPD is eligible for lower interest rates on bonds. Dawson PPD uses bonds to finance multi-million dollar upgrades to the power grid, while minimizing the impact on electric ratepayers.
S&P ratings are based on a business’s ability to meet their financial obligations. During the rating process financial reports and cash flows are analyzed. Key personnel were interviewed about business practices and future plans.
Dawson Public Power District provides electricity to small towns and rural customers in south central Nebraska. Because dependable, safe, and affordable power is important to the ratepayers, each year the District proactively budgets funds to maintain and refurbish portions of the electrical grid. In 2023, Dawson PPD’s customers rated satisfaction with the District as excellent. Dawson PPD employs 80 people and has a total utility plant value of over $247 million.