Debt Refinancing Will Stabilize Electric Bills
The City Council this week approved the sale of $100 million in bonds to refinance debt issued in 1986 to pay for Anaheim’s interest in San Onofre Nuclear Generating Station.
What this means for customers of the city-owned utilities is stable electricity rates for the next several years and lower rates beginning by the year 2003, city officials said.
Michael Bell, the assistant general manager for the Public Utilities Department, said that the city holds a 3.16% stake in the San Onofre generating station.
By refinancing the bonds, Bell said, the city will be able to pay off the debt three years early, by 2005.
That will save $41 million in principal and interest payments, Bell said, and will help the city to maintain a competitive rate structure.
“Our objective is to reduce the cost of electricity to customers,” he said, “And this is one of the major ways of accomplishing that.”
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