Moody’s Investors Service said July 16 that it has affirmed Dairyland Power Cooperative‘s issuer rating at “A3” and added that Dairyland’s ratings outlook “remains stable.”
“The rating affirmation reflects Moody’s view that Dairyland can sustain its currently sound financial metrics, which have shown improvement in recent years to solidify its position at this rating level”, said Kevin Rose, Vice President-Senior Analyst.
“The rating affirmation also incorporates Moody’s view that Dairyland will demonstrate a willingness to implement periodic rate increases which we believe will be the norm going forward as debt financing of capital expenditures for environmental and transmission related projects will be necessary over the next couple of years,” Moody’s Rose went on to say.
Headquartered in La Crosse, Wis., Dairyland Power is a not-for-profit electric generation and transmission cooperative owned by and supplying power to its 25 distribution cooperative members and 17 municipal utilities in the states of Wisconsin, Minnesota, Iowa, and Illinois. Dairyland owns or controls approximately 1,372 MW of electric generating capacity and reported revenues of $443m in 2013.
Dairyland recently reached agreement with the Sierra Club and the U.S. Environmental Protection Agency (EPA) to stop burn coal at Alma Units 4 and 5. The two units together represent about 94 MW of generation capacity.
Dairyland President and CEO William Berg plans to retire at the end of this year after a 40-year career, according to the Dairyland website.