American Municipal Power, Inc. (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 with extra flexibility and capacity in financing non-electric projects.
Because AMP regularly communicates 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 more than $809 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.
For more information on AMP financial programs, please contact Drew Dunagin, Senior Vice President of Finance and Chief Financial Officer, at 614.540.1111 or [email protected].
