– Moody's Investors Service has reaffirmed PJM Interconnection's
stable financial outlook and Aa3 debt rating, one of Moody's highest investment grade rankings.
In support of the Aa3 rating on PJM's senior unsecured debt, Moody's points to the company's
minimal risk based on the size, stability and liquidity of the PJM wholesale electricity market, the
world's largest, as well as the provisions of PJM's operating agreement and tariff. The rating
considers the stringent credit standards that all PJM market participants are subject to both upon
application for membership and on an on-going basis.
"This vote of confidence is welcome by PJM and our 330 plus member companies," said Suzanne S.
Daugherty, vice president, chief financial officer and treasurer of PJM. "The way PJM does business
with its customers, our operating agreement, is the primary factor for the company's earning this
Moody's pointed to the fact that PJM is the first regional transmission organization to implement a
regional transmission expansion planning process, citing PJM's authority to require members to
upgrade systems to ensure electricity reliability now and in the future. In the PJM region, total
approved upgrades to the electric transmission system now exceed $1 billion.
"Another key consideration for the Aa3 rating is the fact that the bulk of PJM market activity -
approximately 65 percent - is transacted by companies with investment grade credit ratings," said
Daugherty. "Their individual and collective financial characteristics strengthen the credit quality of the
total membership of PJM. More than eight billion dollars in transactions pass through PJM annually;
since 1997, transactions administered by PJM total more than $28 billion."
Moody's is a leading provider of market-based quantitative services for banks and investors in
credit-sensitive assets serving the world's largest financial institutions.
PJM Interconnection ensures the reliability of the high-voltage electric power system serving 45.3 million people
in all or parts of Delaware, Indiana, Illinois, Kentucky, Maryland, Michigan, New Jersey, Ohio, Pennsylvania,
Tennessee, Virginia, West Virginia and the District of Columbia. PJM coordinates and directs the operation of the
region's transmission grid; administers a competitive wholesale electricity market, the world's largest; and plans
regional transmission expansion improvements to maintain grid reliability and relieve congestion. Visit PJM at