By Patrick Sheridan
The Southern California Public Power Authority plans to sell approximately $428.9 million in bonds for upgrades to the Southern Transmission System, a high-voltage electrical transmission line that brings power generated at a Utah power plant to areas throughout Southern California.
The offering will include approximately $214.73 million in 2025-1 Southern Transmission System Renewal Project fixed-rate serial revenue bonds and three term bonds with maturities ranging from 2026 to 2053. The Authority is also selling approximately $214.15 million in 2025-2 fixed tender bonds that mature in 2053, according to the roadshow document that accompanied the preliminary official statement posted Monday on MuniOS.
Retail orders can be placed on July 8, with institutional pricing slated for July 9. Closing is scheduled for July 23, according to the document.
Interest on the bonds is payable semiannually on Jan. 1 and July 1 of each year, commencing on Jan. 1, 2026.
The bonds are special, limited obligations of the Authority payable solely from, and secured as to the payment of the principal or redemption price thereof, and interest thereon solely by, a pledge of revenues and certain other moneys. Revenue consists primarily of payments to be made to the Authority by the project participants.
Proceeds will be used in part for new converter equipment and alternating-current switchyard expansions at the Adelanto Converter Station in Adelanto, Calif., and the Intermountain Converter Station near Delta, Utah. These facilities constitute the endpoints of the Southern Transmission System, a 488-mile overhead direct-current power-transmission line that carries electricity produced in Utah for distribution in Southern California.
The Southern Transmission System is owned by the Intermountain Power Agency, a power-generating cooperative of 23 Utah municipalities and the California municipalities of Pasadena, Anaheim, Burbank, Glendale and Riverside, as well as the Los Angeles Department of Water and Power.
Moody's Ratings and Fitch Ratings have given the bonds Aa2 and AA- ratings, respectively.
The senior manager on the deal is RBC Capital Markets, and the co-senior manager is PNC Capital Markets.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
(END) Dow Jones Newswires
July 01, 2025 11:21 ET (15:21 GMT)
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