Your PUD
News Release
Debt management tool approved
Chelan County PUD
News Release
5/31/2005
After considering potential benefits and risks, Chelan County PUD commissioners on Tuesday approved a policy authorizing a tool to obtain lower interest costs on debt.
The tool, called a swap, is a type of derivative transaction authorized by state statute that allows the PUD to refinance or issue debt at a variable rate that is then swapped to fixed interest payments for the life of the debt. Calculations show that net savings could be in the millions of dollars.
Commissioners began the discussion on the possibility of using interest rate swaps last week. Any transactions will require additional approval from the board.
Board members also agreed to pay PFM, a financial consulting firm in Seattle, up to $75,000 for swap advisory services, including assistance with setting up future swap contracts, monitoring and reporting on them.
In other business, commissioners:
- Received a report on the PUD’s investments in the fourth quarter of 2004 and first quarter of 2005. Treasury Supervisor Debbie Todd reported that the average rate of return on PUD investments in the 2004’s last quarter was 2.77 percent on around $325 million. The average rate of return for the first quarter of this year moved up to 3.15 percent on around $319 million.
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The next regular meeting of the PUD commission will start at 1 p.m. on Monday, June 6, in the boardroom of the Headquarters Building, 327 N. Wenatchee Ave.
Most PUD commission meetings are recorded and a link to the audio is available on the PUD’s Web site, www.chelanpud.org.
Christy Shearer
Communications Specialist
509.661.4258
509.421.4258, cell
christin@chelanpud.org