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Regular City Council Meeting
Resolution - Lubbock Power & Light:
Consider a resolution ratifying the Agreement for Credit Rating Services, between the City of Lubbock, acting by and through Lubbock Power & Light, and Fitch Ratings, Inc., related to credit rating services for Revenue Bonds Series 2021.
Lubbock Power and Light (LP&L) requested a public rating from Fitch Ratings for credit rating services for the issuance of Electric Light and Power System Revenue Bonds, Series 2021.
The Electric Light and Power System Revenue Bonds, Series 2021 (“Bonds”), are being issued for the following purposes:
(i) to fund acquisition, purchasing, construction, improvement, renovation, enlarging and/or equipping of property, buildings, structures, facilities, and/or related infrastructure for LP&L, and
(ii) to refund interim obligations “Note Program” issued for such purposes.
LP&L supplied Fitch with factual information, including without limitation any information identified by Fitch in any questionnaire which was utilized to determine a rating. Fitch’s rating is subject to both the analytical process and limitations described in the fee agreement and the provisions relating to understanding ratings, including the usage and limitations thereof.
Discussions with Fitch regarding the Bonds needed to take place on July 22, 2021. As a result, this agreement was signed and is now being brought to the City Council for ratification, as it relates to the upcoming bond issuance.
The Fitch Ratings Agreement includes a net rating fee of $92,000 (with a credit of $13,000 for LP&L’s annual fee). These costs will be funded from cost center 7111 (LP&L Administration).
David McCalla, Director of Electric Utilities
Resolution - Fitch Ratings, Inc.
Agreement - Fitch Ratings
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