GVEC is pleased to report recognition of the Cooperative’s financial strength following a credit rating upgrade from S&P Global Ratings.
S&P Global Ratings (S&P) raised GVEC’s issuer credit rating and underlying rating on its existing revenue bonds from A to A+, while affirming its A-1 short-term rating on the Cooperative’s commercial paper notes. The outlook is stable, where applicable.
“These ratings recognize the disciplined financial and operational decisions we make on behalf of our members,” said GVEC General Manager and CEO Darren Schauer. “As a member-owned cooperative, maintaining financial strength helps us manage costs, invest responsibly in our system, and continue providing reliable, competitively priced service and long-term value to the people and communities we serve.”
In upgrading GVEC’s rating, S&P cited the Cooperative’s robust coverage and liquidity, strong reserves, willingness to adjust rates when necessary, and strengthened power procurement strategy, including purchasing and pricing approaches that helped manage costs during peak-demand periods.
The agency reported GVEC’s electric rates as 8% lower than the Texas state average following adjustments to its generation and transmission (G&T) rate in 2022. GVEC has made no rate increases since then.
The S&P upgrade independently affirms GVEC’s commitment to responsible stewardship of members’ resources and long-term value. It also provides greater access to financial markets, lower borrowing costs, and favorable financial and power supply opportunities. These advantages help GVEC invest responsibly in the infrastructure, technology, and services needed to serve a growing region while maintaining reliable, affordable service for members.
