USDA Announces Plan to Fund Improvements to Distribution and Smart Grid Technologies
Posted on Oct 14, 2011 in Financing, Innovation/Efficiency | Comments Off on USDA Announces Plan to Fund Improvements to Distribution and Smart Grid Technologies
Tom Vilsack, the Secretary of Agriculture, announced plans to fund projects across 27 states. Coops on track to receive funding for their projects include Tri-State Generation and Transmission Association, Inc., Northern Virginia Electric Cooperative, Amicalola Electric Membership Corporation and Gunnison County Electric Association. For more on this story, see the USDA’s news...
Hoosier Closes $240 Million Private Placement
Posted on Oct 7, 2011 in Financing | Comments Off on Hoosier Closes $240 Million Private Placement
On September 30, 2011, Hoosier Energy Rural Electric Cooperative, Inc., closed a $240 million private placement transaction on which Goldman Sachs served as sole placement agent. The transaction included two tranches of notes: the $190 million Series A Notes with a weighted average life of 25.8 years and a coupon of 4.86%, and the $50 million Series B Notes with a weighted average...
Pedernales Electric Cooperative Revises its Creditworthiness Policy
Posted on Sep 20, 2011 in Financing | Comments Off on Pedernales Electric Cooperative Revises its Creditworthiness Policy
The Pedernales Electric Cooperative (PEC) Board of Directors has approved changes to the coop’s creditworthiness policy. The new rules relax creditworthiness for new and existing members, including a new guarantee letter process whereby a member or applicant can be guaranteed by an existing member. You can find more details about PEC’s new plan here.
Coops Get Government Boost For New Projects
Posted on Sep 16, 2011 in Financing, Project Development | Comments Off on Coops Get Government Boost For New Projects
U.S. Agriculture Secretary Tom Vilsack announced on Friday that twenty-seven rural electric cooperative utilities will receive government funding for generation and transmission projects, distribution facilities and smart grid technologies. The United State Department of Agriculture reports that these loans are expected to finance rural electric utility improvements benefiting nearly...
Coops in 14 States Receive USDA Loans
Posted on Aug 30, 2011 in Financing | Comments Off on Coops in 14 States Receive USDA Loans
U.S. Department of Agriculture Secretary Tom Vilsack has indicated that coops will receive funding for smart grid technologies and improvements to generation and transmission facilities. This funding, in the form of loans, will total approximately $900 million. The loans are provided by the Rural Utilities Service to help electric utilities upgrade, expand, maintain and replace rural...
Coop’s Investment Will Rehabilitate a Montana Hydroelectric Plant
Posted on Aug 16, 2011 in Financing, Project Development, Renewable Energy | Comments Off on Coop’s Investment Will Rehabilitate a Montana Hydroelectric Plant
The Flathead Electric Cooperative has agreed to pre-purchase $400,000 worth of electricity generated by a 250-kW hydroelectric generator. The coop’s investment will cover roughly two-thirds of the cost to rehabilitate the plant, and a block grant will cover the rest. After the coop recovers its investment, the city of Whitefish will be able to use power produced from the plant to...
East Kentucky Power Cooperative Finalizes New Credit Facility
Posted on Aug 10, 2011 in Financing | Comments Off on East Kentucky Power Cooperative Finalizes New Credit Facility
East Kentucky Power Cooperative (EKPC) has finalized a new five-year $450 million credit facility to replace an existing three-year credit facility in the same amount. EKPC expects to save more than $5 million annually under the new credit facility, due to lower interest costs improved operating performance. Read more about the new credit facility here.
New Mexico Coop Seeks Tenants for Command Center to Defray Costs
Posted on Aug 9, 2011 in Financing, Project Development | Comments Off on New Mexico Coop Seeks Tenants for Command Center to Defray Costs
The Kit Carson Electric Cooperative in New Mexico is opening a new regional command center amid concerns about its costs. The center was supposed to be paid for by the coop, municipal agencies and rental tenants. However, the mayor of Taos claims that the city council has never seen a firm proposal from Kit Carson, and at this time the coop is the only tenant in the building. If the...
Homer Electric Association Positioned to Buy Power Plant
Posted on Jul 28, 2011 in Financing, Mergers/Acquisitions | Comments Off on Homer Electric Association Positioned to Buy Power Plant
Through its subsidiary Alaska Electric and Energy Cooperative, the Homer Electric Association (HEA) plans to purchase the Bernice Lake Power Plant with a generation capacity of roughly 69.9 MW for $11.8 million. The deal is conditioned on obtaining Regulatory Commission of Alaska approval to amortize the purchase price over several years. The plant is currently owned by the Chugach...
Proposed Derivatives Rules Designed for Wall Street May Apply to Coops
Posted on Jul 22, 2011 in Financing, Legislative & Politics, Regulation & Policy | Comments Off on Proposed Derivatives Rules Designed for Wall Street May Apply to Coops
In a hearing before the House Committee on Agriculture, a number of Representatives questioned the chairman of the Commodity Futures Trading Commission about the scope of proposed derivatives rules under Dodd-Frank. Despite the chairman’s assurances, many fear that coops and utilities will be regulated as swap dealers under the proposed rules. Law 360 has the full story...
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