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Refunding of Bonds Saves the PUD Over $800,000
The Clallam County PUD was recently able to secure a cash flow savings of $808,520 over the next twelve years through the refunding of 2008 Electric Revenue Bonds.
Beau Brown, PUD Treasurer / Controller, says, “We were able to refund the Series 2008 Electric Revenue Bonds (ERB) at lower interest rates, which in turn helped us realize a significant cash flow savings.”
The bond provisions of the Series 2008 allowed for the refunding, and with lower interest rates the decision to refund was clear. Doug Nass, PUD General Manager, says, “Commissioners and staff take great care in the management of public monies, so with the opportunity to refund bonds that results in a savings like this it only made sense to do so.”
The Series 2008 ERB outstanding were $8,570,000 and are being refunded with a Series 2016 ERB issuance in the amount of $8,080,000. The cash flow savings to the District is $808,520 (or $770,201 when considering the time value of money) over the next twelve years. The refunding of the Series 2008 bonds does not impact the final principal payment date, which remains due in 2028.
The refunding of bonds also fits well within the PUD’s Mission of “Providing reliable, efficient, safe and low cost utility services in a financially and environmentally responsible manner.”