LDC Minimus, LDC Insipidus,
LDC Robustus? Which Would You Rather Be?
Post-Order 636 evolution depends on aggressive regulatory and legislative reform.
"Get out of...
Old Dominion Electric Co-op. (ODEC) has entered into a leaseback financing transaction with First Union National Bank that could save its 12 member systems about $4 million per year. First Union leased Unit One of the Clover Power Station from ODEC for 22 years with an upfront cash payment of $47.5 million, then leased it back to ODEC. Half the payment, $23.6 million, was used to reduce ODEC's long-term debt obligations; the balance was used for a debt swap that replaced $23.9 million in bonds paying an interest rate of 8.76 percent with new bonds paying a reduced interest rate of
7.06 percent.According to ODEC vice president Daniel Walker: "Previously, this type of transaction had typically been done with jet airplanes. This is the first time this type of transaction has been used for a power plant." t
Lori A. Burkhart is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.
Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.