Norwich, CT – Connecticut Municipal Electric Energy Cooperative Bond Refinancing Will Save Municipal Electric Utility Ratepayers over $9 million dollars

Press Release- For Immediate Release

 

Norwich, CT – Connecticut Municipal Electric Energy Cooperative Bond Refinancing Will Save Municipal Electric Utility Ratepayers over $9 million dollars

 

The Connecticut Municipal Electric Energy Cooperative (“CMEEC”), together with its member municipal electric utilities, the Jewett City Department of Public Utilities, Norwich Public Utilities, Groton Utilities, Bozrah Light & Power, Third Taxing District of the City of Norwalk and South Norwalk Electric and Water, are pleased to announce that on April 27, 2020 CMEEC and its sister organization ,  the Connecticut Transmission Municipal Electric Energy Cooperative (“TRANSCO”) have closed on an advanced forward bond sale that will enable then to refinance approximately $60 million dollars of existing higher interest rate tax-exempt debt.  This transaction will reduce interest payments on debt by a net present value of approximately $9 million dollars over 20 years.  The refinancing will also have a positive impact on transmission revenues over the same time period.  CMEEC Chief Executive Officer Dave Meisinger said, “With interest rates at historic lows, and CMEEC’s excellent credit rating, CMEEC had the opportunity to substantially lower its debt service on the pre-existing bonds, an opportunity that the Board of Directors wholeheartedly supported.”   Chairperson of the Board of Directors Kevin Barber echoed this sentiment and praised the efforts of CMEEC on behalf of the ratepayers, adding “It is especially satisfying now, in the midst of this pandemic, to lock in long-term savings to our municipal electric ratepayers.  This refinancing also helps the CMEEC members maintain their low retail electric rates.”