Resolution - Lubbock Power & Light: Consider a resolution authorizing publication of a notice of intention to issue Electric Light and Power System Revenue Bonds.
Item Summary
This resolution authorizes the City to publish a notice of intent in the Lubbock Avalanche Journal to issue Electric Light & Power System Revenue Bonds (Revenue Bonds).
The Revenue Bonds are being issued for the following purposes:
1. Acquire, purchase, construct, improve, renovate, enlarge, and/or equip property, buildings, structures, facilities, and/or related infrastructure for Lubbock Power & Light; and, 2. Refund certain obligations of Lubbock Power & Light;
Specifically, the Revenue Bonds are designated in part, $70,000,000, to fund the Substation Capacity Upgrade - Northeast, ERCOT Transmission/Distribution Service Provider System, Distribution System Upgrade-Improvements-Expansion, Substation Capacity Upgrade - Co-op, Substation Capacity Upgrade - Vicksburg, 4kV Distribution Conversion, Yellowhouse Substation Capacity Upgrade, McDonald Substation Capacity Upgrade, Red Raider Substation Distribution Feeders, Downtown Redevelopment, Substation Capacity Upgrade - Thompson, and Fiberoptic Communications projects. The before mentioned projects relate to Capital Improvements to move remaining 30 percent of customers to ERCOT. In addition to capital expenditure, $90,000,000 of these funds will be used to reimburse for the Partial Requirements Settlement payment to Southwest Public Service Company (SPS).
All projects funded through this Revenue Bond issuance were discussed and approved during the budget process. No changes were made to the scope or funding source from what was presented during the budget approval process.
Fiscal Impact
The total amount of the Project costs financed with the Revenue Bonds will not exceed the $160,000,000 total principal amount of one or more series of Electric Light & Power System Revenue Bonds. The annual debt service payments for the Revenue Bonds are budgeted through the annual operating budget process and are included in long-term financial planning and rate models. The annual payments are made from all or part of the net revenues of the City's Electric Light & Power System.
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer, City of Lubbock Harvey Hall, Chief Financial Officer, Lubbock Power & Light