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Moody's upgrades Municipal Electric Authority of Georgia's Plant Vogtle Units 3&4 Project J revenue bonds rating to Baa1 from Baa2; rating outlook is positive

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September 11, 2020


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

Moody's Investors Service has upgraded Municipal Electric Authority of Georgia's Plant Vogtle Units 3&4 Project J (MEAG Project J) $2.0 billion outstanding senior revenue bonds' rating to Baa1 from Baa2. The rating outlook is revised to positive from rating under review, with such review concluded after commencing on August 10, 2020.

Today's rating action considers the credit quality of JEA, FL - Electric Enterprise (JEA: A2 Positive) along with the final terms of the settlement agreement between Municipal Electric Authority of Georgia (MEAG Power) and JEA which are viewed as credit positive to MEAG Project J. The settlement agreement which was reached on July 30th and executed on August 13th resolved all disputed issues relating to the new Units 3 and 4 of the Alvin W. Vogtle Electric Generating Plant ("Plant Vogtle"), and the Amended & Restated Power Purchase Agreement (PPA) dated as of December 31, 2014 (the Project J PPA) including additional compensation obligation to MEAG Power from JEA, while also giving JEA a right of first refusal, subject to the rights granted to the Project J Participants in their Power Sales Contracts, to purchase any entitlement share of a Project J participant in the 21st year following commercial operation (COD) of the Vogtle Units 3&4.

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