S&P Global Ratings recently affirmed its ‘A’ long-term rating with a stable outlook on the Municipal Energy Agency of Nebraska’s (MEAN) outstanding bond obligations.
“The rating reflects our view that the agency's comprehensive management policies have resulted in a stable financial and operational risk profile, which we believe is sustainable in the near term given the agency's willingness to adjust rates to maintain healthy financial margins and facilitate (MEAN’s) resource transition while navigating regulatory uncertainty, ongoing supply chain issues, and rising costs,” the ratings report cited.
S&P’s report cited as benefits supporting the rating:
- The majority of MEAN’s participants are long-term total requirements participants (Service Schedule M), which provided 90 percent of MEAN’s total participant revenues in 2024. Long-term total requirements participants accounted for 84% of total operating revenue from electric energy sales.
- MEAN’s diverse energy resource portfolio that includes shared generation ownership and contracts for purchased power.
- A fixed-cost recovery charge component that is designed to capture a significant portion of MEAN’s costs that do not vary by electricity demand.
- The report also cited MEAN’s operational metrics including unrestricted reserves, including a rate stabilization fund and MEAN’s level of liquidity provides financial flexibility to meet operational challenges.