Bonneville Power Administration
http://www.bpa.gov
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Debt Management
BPA's debt management policy is aimed at optimizing its debt portfolio to keep power and transmission rates low, reduce long-term costs and secure access to capital.
Since 2000, BPA has lowered its weighted average interest rate on its debt from 6.6 percent to 5.6 percent through debt optimization, traditional refinancings and other debt management initiatives.
BPA's total debt and long-term obligations have been over $12 billion for more than 20 years. Much of this consists of appropriations made before 1974 that were assigned to BPA to repay and Energy Northwest debt that originated before 1984.
Debt optimization makes room within the agency's limited $4.45 billion borrowing authority with the U.S. Treasury for new capital projects. As of Sept. 30, 2006, BPA has
$2. 5 billion outstanding in Treasury bonds. Absent other financing sources and BPA's initiatives to preserve capital, its Treasury borrowing authority is expected be exhausted in 2012.
Repaying appropriated debt to Treasury does not create room in BPA's Treasury borrowing authority. Retiring outstanding Treasury bonds issued by BPA since it became self-financed in 1974 creates room within the $4.45 billion borrowing limit.
Background Information
For a variety of purposes BPA staff conduct briefings on BPA's debt management practices. This site presents for easy reference those briefings and other debt management reference material.
Frequency of Posting: Infrequent
POC: Don Carbonari, KFW
File format: PDF
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Page last modified
on Wednesday April 18, 2007.
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