News Story

The following is a Moody's investor service news release:

Moody's Investors Service has affirmed the Baa3 rating for Municipal Electric Authority of Georgia's (MEAG Power) Plant Vogtle Units 3&4 Project J Bonds, affecting approximately $1.97 billion of outstanding rated debt. Concurrent with the rating affirmation, Moody's has changed the outlook for MEAG Power Project J Bonds to positive from negative.

RATINGS RATIONALE

The rating affirmation and revision of the outlook to positive from negative primarily reflects the significance of the June 17, 2020 federal court ruling by a U.S. District Court judge regarding the validity of the power purchase agreement (PPA) between MEAG Power and JEA, FL - Electric Enterprise (JEA: A2 negative). The court order declared that the PPA between MEAG Power and JEA is valid and enforceable, strengthening the security pledge for the Project J bonds. Moreover, this judicial decision solidifies the legal framework under which JEA is required to make payments to MEAG Power for the first 20 years of the Project J bonds.

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