Seattle City Light successfully sold $265 million of bonds on Wed., Oct 22, 2014. A portion of the proceeds will be used to refinance existing bonds at a lower interest rate, saving $7.2 million annually for City Light customers. Seattle City Light successfully sold $265 million of bonds on Wed., Oct 22, 2014. The sale provides $172 million in new money to support the utility’s capital investments, including upgrades to its aging infrastructure that will improve electric service reliability for customers. The remaining funds will be used to refinance 2004 bonds at lower interest rates. This will result in $7.2 million in annual savings for Seattle City Light customers, toward a commitment by the utility to save $18 million per year by the end of 2015.
The bonds sold at an average true interest cost of approximately 3.1 percent, the best rate received on a City Light long-term bond sale in recent history. The low rates are a result of good market timing, the utility’s solid financial position and a good credit rating, which was upgraded last year (Moody’s – Aa2/Stable, and, Standard & Poor’s – AA/Stable).
“This $265 million bond sale will greatly benefit our customers; helping the utility deliver critical system upgrades and improvements while keeping our customers’ rates low and predictable for many years to come,” said Jorge Carrasco, Seattle City Light General Manager.
To learn more about City Light’s six-year strategic plan, including specific investments and savings targets, please visit http://www.seattle.gov/light/stratplan/