Fitch Ratings, a nationally recognized credit ratings agency, has affirmed Pedernales Electric Cooperative’s AA- rating, noting the rating outlook is stable.
“We’re very pleased with Fitch’s decision, and we believe our AA- rating reflects PEC’s commitment to financial stewardship and responsible planning on behalf of our membership,” PEC Chief Executive Officer Julie Parsley said.
In explaining the rating score, Fitch concluded PEC’s financial performance is consistently strong, and the cooperative’s financial margins show a high degree of consistency. Additionally, Fitch stated the cooperative has consistently maintained strong cash flow, built equity and kept pace with the capital demands of high growth in its service area. PEC has experienced annual growth of 4 percent, which is roughly 12,000 new meters a year.
Fitch also included in their report that PEC has improved rate competitiveness, with rates decreasing due to power cost adjustments and PEC’s internal cost containment. PEC rates are comparable with the state average.
“PEC’s board and employees are dedicated to serving our membership, and we’re proud of the work we’ve accomplished. PEC powers the lives of approximately 1 million Central Texans, and we continue to welcome new businesses and families to our service area,” Parsley said. “We offer our members fair rates, friendly service and exceptional reliability. It takes a dedicated group, working together, to achieve that level of service.”
To view the full Fitch Ratings report, visit their website at fitchratings.com.
PEC is the nation’s largest electric distribution cooperative, powering lives across its 8,100-square-mile service area, which includes six of the 15 fastest growing counties in Texas.