The economic downturn has impacted the NCMPA #1 participants and resulted in reduced participant electric sales.
While Fitch is typically concerned when an issuer undertakes a debt restructuring, in this case the size of the restructuring is relatively small (in relation to total outstanding debt) and NCMPA #1 is re-deploying the principal amounts to a period where debt service payments are more manageable.
As debt rapidly pays off, participant's power payment costs to NCMPA #1 should become more manageable and retail customers of the 19 participants should benefit from more competitive electric rates.
The 2010 bonds will be secured on parity with NCMPA #1's $1.
The State Local Government Commission (LGC) approved the participant's project power sales contracts as well as all NCMPA #1 debt financings.
NCMPA #1 owns a 75% interest in the 1,129 MW Catawba nuclear unit #2.