City of Anaheim, CA – Electric System (APU Qualified Obligations) Surveillance Report

Rating Summary

The rating for the revenue and revenue refunding bonds issued by the Anaheim Housing and Public Improvements Authority’s (“AHPIA”) on behalf of Anaheim Public Utilities’ (“APU”) Electric System (the “Electric System” or “APU Electric”) reflects the credit quality of the obligor -- the City of Anaheim’s (the “City’s”) electric utility system, or APU Electric. The Electric System’s credit quality stems from its consistently strong financial performance, with solid liquidity and healthy debt service coverage for the past five years, supported by a track record of timely and adequate rate adjustments and an effective use of approved rate mechanisms to recover variable costs. The 5-year capital improvement plan (“CIP”) is manageable at $497.1 million through FY 2031, with no additional debt requirements. APU maintains rate-setting authority, with competitive retail electric rates relative to the State and neighboring electricity providers.

Counterbalancing these strengths are…