Public Power Agency Saves $25 Million by Refinancing Existing Debt

RALEIGH, N.C., Sept. 14 /PRNewswire-USNewswire/ -- The N.C. Eastern Municipal Power Agency, which provides wholesale electricity to 32 public power communities across eastern North Carolina, will save $25.2 million by refinancing existing debt at a lower interest rate.

The organization issued $146 million of bonds on September 8, a move that will reduce its annual debt payments by an average of $2.7 million a year through 2022. The decision was approved in July by the N.C. Eastern Municipal Power Agency (NCEMPA) Board of Commissioners and the ElectriCities Board of Directors.

"Many homeowners are taking advantage of low interest rates by refinancing their home mortgages, and we are taking similar steps to achieve significant savings.  By refinancing a portion of our existing debt, the power agency will save more than $25 million, on a net present value basis, over the next 12 years," said Sam Noble Jr., Chairman of the NCEMPA Board of Commissioners and Tarboro Town Manager.  "This is part of our ongoing commitment to take responsible actions to lower utility costs for public power customers in eastern North Carolina."

Tim Tunis, ElectriCities Chief Financial Officer, said investors have responded favorably to the power agency's solid financial operations and improving credit. Fitch Ratings, a global rating agency, upgraded the N.C. Eastern Municipal Power Agency's rating to A- from BBB+ last week.  

About NC Eastern Municipal Power Agency

The North Carolina Eastern Municipal Power Agency (NCEMPA) provides wholesale electricity to 32 public power communities across eastern North Carolina.  Public power has a strong history in North Carolina, serving more than 500,000 residential, commercial and industrial customers. NCEMPA was formed in 1982 and is part of ElectriCities of North Carolina.

SOURCE ElectriCities of NC Inc.