SAN FRANCISCO — Standard & Poor's Wednesday upgraded $9.03 billion of California Department of Water Resources power supply revenue bonds to AA-minus from A-plus on reduced exposure to electricity market volatility.

The bonds were issued in 2002 to repay loans the general fund incurred when the state took over long-term electricity supply contracts for investor-owned utilities during the power blackouts of 2000 and 2001, when a surge in wholesale electricity prices bankrupted the state's major private utilities. The bonds are secured by surcharges on the electric bills of California's three major investor-owned utilities.

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