GROWING DISTRIBUTION SYSTEM: GVEC is a transmission and distribution cooperative located in central Texas with a relatively compact service area that exhibits strong growth, particularly in 2013 and 2014 related to the pace of development in the Eagle Ford oil and gas formation.
LONG-TERM RATING AND MARKET ACCESS: GVEC's short-term rating maps to GVEC's 'AA-' long-term credit rating (electric system revenue bonds), which reflects the utility's overall strong credit quality and strong market access.
GVEC is a retail transmission and distribution cooperative that provides electric service to approximately 80,000 customers across 13 counties in Central Texas.
GVEC anticipates that future energy growth will continue at around 2.6% annually.
For additional information on GVEC's long-term rating, see 'Fitch Affirms Guadalupe Valley Electric Cooperative, TX Elec Sys Debt' (April 21, 2017) at www.fitchratings.com.
GVEC's sufficient internal liquidity and 'AA-' long-term rating support the 'F1+' short-term ratings on the cooperative's commercial paper note program.
SOUND CORE OPERATIONS: GVEC's core electric operations provide very strong financial performance that has occurred throughout the recent period of very high load growth and transition away from the all-requirements contract with the Lower Colorado River Authority to medium-term contracts with various power supply providers.
GVEC is a retail transmission and distribution cooperative that provides electric service to around 77,000 customers across 13 counties in Central Texas.
GVEC anticipates that growth in the next few years will continue to be strong, despite some slow-down in new drilling.
For additional information on GVEC's 'AA-' long-term rating, see Fitch's press release dated June 18, 2015 and available at www.fitchratings.com.