Moody's Investors Service last week said that it is monitoring weather-related developments affecting the Nebraska Public Power District, which has $1.5 billion of outstanding revenue bonds rated A1.
"The district is managing [the development] quite well at this time," said Dan Aschenbach, a vice president at Moody's.
In a comment released last week, Moody's said a windstorm in early July caused $25 million in damages to a portion of the power district's transmission system in the central and eastern parts of the state. The district plans to issue commercial paper to finance the rebuilding, according to Moody's. District officials believe that a substantial portion of the funds may be reimbursed by the Federal Emergency Management Agency, Moody's said.
In early July, the Cooper Nuclear facility closed as a precautionary measure in response to the rising flood waters of the nearby Missouri River, according to the rating agency. The plant was not in jeopardy, but flooding closed evacuation routes and exceeded water levels permitted under Nuclear Regulatory Commission rules, Moody's said. The flood waters have receded and the plants has been restarted.
The cool, wet weather has dampened demand for electricity, causing the district to downsize its revenue expectations by $37 million for fiscal 1993, which ends Dec. 31. To offset anticipated lower revenues, management has responded with expenditure adjustments and use of surplus funds, the rating agency said.
