American Municipal Power, Inc. (AMP) provides financial services to assist its members through financing capital projects, educational forums and financial reviews.
"On-Behalf of" Financing Program
AMP provides a convenient, cost-effective way for member communities to finance electric utility projects. This program allows AMP to issue tax-exempt debt on behalf of member communities.
Bonds or notes are issued by AMP and supported by the member community’s pledge to pay debt service from revenue collected by its electric fund. Because the amount financed for a specific project is not included when calculating the municipality’s regular bond cap, this service can provide communities extra flexibility and capacity in financing non-electric projects.
Because AMP is in regular communication with bond counsel, investment bankers and bond buyers, communities also benefit through reduced costs and excellent rates. Since the program’s inception, AMP has financed nearly $777 million of short term Bond Anticipation Notes on behalf of its member communities.
Financing rates depend on existing market conditions at the time the bond is sold, the investor’s perception of possible risk factors such as the potential impact of deregulation, current economic conditions in the community as well as the financial soundness of the electric fund, operating margins and debt coverage ratios.
Finance & Accounting Subcommittee Meetings
The Finance and Accounting Subcommittee meetings are held for and attended by finance professionals, utility professionals and other local officials from AMP member communities. The function of the meetings is to assist financial professionals, utility professionals and elected officials with accounting, power supply and other utility industry related matters and provide an educational forum from which to learn about the most recent developments and topics in the accounting and electric utility industry. Its meetings are held throughout the AMP membership and feature presentations on finance and accounting best practices, power supply, other current industry related topics, and AMP project updates.
For more information on AMP financial programs, please contact Chris Deeter, assistant vice president of finance and member credit compliance, at 614.540.0848 or firstname.lastname@example.org.
Financial Soundness Review
As a service to member communities, AMP can provide an annual review of the electric fund portion of the community’s enterprise fund. Such a review both alerts the community to any potential areas of concern and helps member communities participating in AMP sponsored financings or projects maintain their electric fund’s bond-debt covenant obligations. If a review should reveal an area of concern, the community is immediately alerted to the issue. Should it be found necessary for the member to raise rates, AMP’s finance and accounting program can assist in providing a list of third-party vendors who complete cost-of-service studies to establish the rates necessary to maintain financial soundness as well as to maintain the bond-debt covenant obligations of the member community’s electric fund.
AMP may also provide, at the request of the member community, a review of cost-of-service study results assisting the member in the rate review process. These electric fund reviews can also be initiated at any time at the request of the member community.
For more information, please contact Chris Deeter, assistant vice president of finance and member credit compliance, at 614.540.0848 or email@example.com.