| AREA: | SAVINGS: | DESCRIPTION OF BENEFIT: | TOTAL BENEFIT: |
| Investment Portfolios | $30,770,000 | In accordance with state law and bond resolutions, Staff prudently invests the Power Agencies' funds in safe, diversified instruments in a manner that maximizes return on investment. Permitted investments include U.S. Treasury notes and bonds, federal agency notes, obligations of the State of North Carolina, prime quality commercial paper, certificates of deposit, bankers' acceptances, repurchase agreements, money market funds and mortgage-backed securities guaranteed by federal agencies. Investment revenues are used to offset expenses and reduce wholesale electricity rates. | Total Benefit ($) |
| Bond Refunding | 16,103,907 | In 2012, Staff refunded Series 2003A bonds for NCMPA1 and replaced them with lower cost bonds. This provides significant reductions in financing costs for the Agency every year through 2032. | Total Benefit ($) - Reduced financing costs in 2012
- $16,103,907
|
| Bond Refunding | 4,548,280 | In 2012, Staff refunded Series 1986A, 1986B and 2003F bonds for NCEMPA and replaced them with lower cost bonds. This provides significant reductions in financing costs for the Agency every year through 2025. | Total Benefit ($) - Reduced financing costs in 2012
- $4,548,280
|
| Bond Refunding | 1,611,403 | In 2010, Staff refunded Series 1993B bonds for NCEMPA and replaced them with lower cost bonds. This provides significant reductions in financing costs for the Agency every year through 2023. | Total Benefit ($) - Reduced financing costs in 2012
- $1,611,403
|
| Capital Additions | 542,500 | In 2009, staff secured the ability to finance $68,650,000 of capital additions for NCMPA1 using Build America Bonds instead of traditional financing. This results in savings of $542,000/year during the life of the bonds. | Total Benefit ($) |
| Credit Ratings | 345,000 | Maintain close professional relationships with, and prepare/present the Power Agencies' financial and strategic information to, the credit rating agencies (Fitch, Moody's, and Standard & Poor's) in a manner that results in the highest possible credit rating for each Power Agency. An increase in a Power Agency's credit rating will result in reduced interest costs on debt. The credit rating upgrade received by NCEMPA in 2009 results in savings of $345,000/year during the life of the bonds. | Total Benefit ($) |
| Consultant Spending | 26,368 | Staff streamlined the process of creating Annual Engineering reports, resulting in fewer consultant hours on this project than in prior years. | Total Benefit ($) - 1 report per Agency x $13,184 savings per report
- $26,368
|