As is common in our industry, Central Lincoln sold electric system revenue bonds to finance the Operations Center project. Such a sale requires bonds to be rated, and after reviewing detailed financial information and economic indicators for the Central Coast, Standard & Poor’s gave Central Lincoln a “AA-” rating. S&P noted the rating was “uniquely high” for a rural utility, and cited Central Lincoln’s very conservative financial management as the lead factor in achieving such a rating.
Large pension funds and institutional investors responded enthusiastically, placing orders for $130 million, when just $30 million in Central Lincoln bonds were for sale. Our bonds quickly sold out the day they went on sale last month. The cost of this critical new facility to residential customers will ramp up to about $2 a month, starting next year.