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Bond Sale Boosts BPA Debt Optimization by Staff BPA Journal, April 2007

BPA and Energy Northwest priced a $548 million bond deal on March 20 as part of its overall debt management program. The sale was made March 22 and was expected to close April 3.

BPA secures all bond debt that Energy Northwest has from building Columbia Generating Station, the Northwest's only nuclear plant, plus the other Energy Northwest terminated nuclear Projects 1 and 3.

The sale had three parts. One part was related to BPA's Debt Optimization Program that enables BPA to pay down a portion of its Treasury debt early and create more room under the agency's debt ceiling at Treasury. The second part provides Energy Northwest with needed capital for projects at Columbia Generating Station. The third part completes a refinancing that replaces higher-interest bonds with lower-interest bonds. This last part will save BPA about $19.1 million in net present value savings over the life of the bonds.