Mount Pleasant, SC, March 1, 2005
New Policies, Area Planning Lead to Improved Bond Rating For Mount Pleasant Waterworks
Mount Pleasant Waterworks’ (MPW) 2004 cost recovery policy, affordable rates for customers and the area’s strong comprehensive plan initiative have led to an improved bond rating for MPW from AA- to AA.
The improved rate was issued this month by Standard & Poor’s (S&P) Ratings Services, the nation’s leading authority on bonding capacity. The upgrade means MPW will receive favorable loan rates when borrowing to finance long-term debt, according to Ed Pierce, MPW’s Chief Financial Officer.
Pierce said the S&P report cited MPW’s newly revised cost recovery policy as a positive financial indicator.
MPW Commissioners studied and implemented changes to its 10 year old Cost Recovery Policy as a way to improve fairness for customer rates and create more efficiency for MPW’s finances. MPW Commission Chairman William L. Golightly said one of the major objectives of the plan is to create sufficient financial reserves to stabilize rates and plan for renewal and replacement of MPW water and wastewater systems. MPW Commissioner Chappy McKay, who chaired the policy review committee, said customers benefit most.
"While the S&P upgrade stands as an honor to MPW, the best benefit goes to customers, who rely on affordable rates, quality water and protection of the environment,” said McKay.
S&P’s report also points to a “healthy financial performance with strong management practices; high debt service coverage and good liquidity; affordable and competitive rates (the second lowest in the region) and; strong comprehensive planning,” as positives for MPW.
Founded in 1935 with service to the Old Village section of town, MPW’s water and wastewater systems today includes over $200 million in infrastructure assets serving more than 30,000 accounts.
S&P applauded MPW’s 10-year capital improvement program, which is annually updated, as a proactive program aimed at maintaining value in its assets such as in-ground pipes, wells, water and wastewater treatment plants, storage facilities, pump stations and others. The CIP includes planning for the timely renewal and replacement of assets in the future.
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