Utility Audit Finds Good News

The Grand River Dam Authority’s net assets increased to $250.1 million in 2007 from $182 million in 2004, according to an audit of the state-owned utility by Deloitte & Touche.

The audit also found that net revenues grew to $91.1 million in 2007 from a loss of $1.1 million in 2002.

The report attributes the healthier economic picture to rate increases in 2004 and 2006, a reduction in the utility’s debt, and improvement to generating facilities.

The authority’s debt, which was nearly $1 billion in the late 1990s and $643 million in 2006, fell to about $530 million by late 2007.

The GRDA board recently approved a plan to issue about $500 million of revenue bonds to buy a 36% stake in a coal-fired power plant.

The authority operates two coal-fired plants and three hydroelectric facilities. It supplies power to municipally owned utilities and rural cooperatives.

The GRDA issued revenue bonds in May 2002 with underlying ratings of A2 from Moody’s Investors Service, BBB-plus from Standard & Poor’s, and A-minus from Fitch Ratings.

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