THE PITTSBURGH WATER AND SEWER AUTHORITY HAS A POSITIVE FINANCIAL OUTLOOK. Despite the economic downturn caused by COVID-19, we maintained our cash balance and achieved a record level of capital investment as we continue to boost our reserve funding to ensure maximum ﬁnancial ﬂexibility. In the long-term, these accomplishments will help to reduce costs and create a more sustainable ﬁnancial future for PWSA.
Two bond transactions completed in 2020 provide a sustainable ﬁnancial outlook for PWSA. With this funding in place, we have the ﬁnances to implement our $1.2 billion Capital Improvement Plan. We also maintained our investment-grade bond rating of A3, as ranked by Moody’s, and an A with a stable outlook by S&P. The investment-grade rating results in lower interest rates that will, over time, save money for PWSA and its ratepayers. PWSA will continue to improve upon this rating in 2021.
Additionally, we secured a $65,220,000 loan from the Pennsylvania Infrastructure Investment Authority (PENNVEST). Its low-interest rate of one percent will reduce our costs and, in the long-term, save customers money. Since 2019, we have saved ratepayers roughly $80 million by using these federal and state funding programs over traditional bond ﬁnancing. We will continue to pursue federal and state funding in 2021 and beyond.