City’s Electric Utility Gets Initial Approval to Sell Bonds
To pay for improvements to the city-owned electric service, the City Council has given tentative approval to invite bids to issue $65 million in bonds.
The bond issue “puts the utility in a better position to compete in the future,” said Mike Bell, public utilities assistant general manager.
With the deregulation of the electric industry, the city needs to reduce generation costs to remain competitive, city officials said.
The financing plan would allow the utility to use revenue to pay off a portion of its generation costs. The bond proceeds would be used for system improvements, which also have been funded by revenue.
Improvements would include new distribution lines and transformers and upgrading substations. Work would be done over the next three years.
The bond would not affect the city’s electric rates, Bell said.
The council is expected to take a final vote on the issue April 28.
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