Municipal Power Agency Relief Subcommittee
The Joint Municipal Power Agency Relief Committee met on Thursday, April 5, 2012 at 1:30 p.m. in Room 544 of the Legislative Office Building. Read the materials distributed at the meeting..
The Joint Municipal Power Agency Relief Committee met Wednesday, March 7, 2012, at 1:30 p.m. in Room 544 of the Legislative Office Building. Read the materials distributed at the meeting.
Letter to Subcommittee - Feb. 3, 2012
Subcommittee Meeting Materials: January 10, 2012 See notice.
ElectriCities shares the committee’s concern about electric rates and continues to take prudent steps to manage the cost of power for our members. The power agency’s outstanding debt (approximately $2.1 billion) accounts for nearly 35% of our electric costs and remains the greatest obstacle to achieving competitive wholesale electric rates.
ElectriCities has taken proactive steps to reduce our debt, lower our interest rates and stabilize our wholesale power rates. In the past 20 years, those efforts have enabled us to reduced the Power Agency’s debt by more than $1.5 billion.
Forming the Power Agencies and purchasing ownership in four CP&L plants was the right decision at the time, but it has created significant challenges for today’s ratepayers. We continue to explore all opportunities to reduce the debt, including debt restructuring and the potential sale of our power generation assets.
We appreciate the committee’s interest in the challenges facing our members and welcome their input and ideas. We are been transparent about our electric costs and have openly shared information requested by the committee about our efforts to manage the Power Agency’s debt.
We will continue to cooperate with the committee as we work toward achieving competitive wholesale electric rates for our members.
ElectriCities Presentation (delivered by Graham Edwards, CEO)
Wake Forest Presentation (delivered by Mark Williams, Town Manager)
Greenville Utilities Presentation (delivered by Ron Elks, CEO)
Economic Impact of Joint Municipal Power Agency Rates (delivered by Thomas Stith)
Subcommittee Meeting Materials: October 25, 2011
Subcommittee Agenda 10/25/2011
Municipal Power Agency Relief Subcommittee Information
State Treasurers Office Presentation
Letter from Thomas Joyner with Nash Produce
Plugged In post from CEO Graham Edwards, Sept. 28, 2011
The Legislative Research Commission has assigned a joint legislative subcommittee to study potential options to lower electric rates. The Municipal Power Agency Relief Subcommittee will consider the feasibility of refinancing or restructuring the debt of the power agencies and look into the option of selling assets to reduce the debt and lower electric rates.
Achieving competitive wholesale electric rates is one of our top priorities and a cornerstone of our strategic plan. We recognize that many people are concerned about electric rates, and we have been studying these same issues for years. While we have successfully lowered our debt by more than $1 billion since 1993, we must come to terms with the fundamental challenge facing our power agencies: its assets are worth less than its debt.
We are committed to achieving competitive rates for our members and look forward to the committee's insight and ideas. We value transparency and will work closely with the committee members to offer our assistance. That includes openly sharing financial information and other data that might prove valuable during this process.
I will keep you updated once the committee begins its work in late October.
Read Plugged In, ElectriCities CEO Blog
Letter to Subcommittee on Municipal Power Agency Relief
For media inquires or additional questions, please contact Ken Raber, SVP of Member Services, at 800.768.7697 ext. 6218 or email@example.com.