In a Tuesday press release, the utility said they have priced their Series 2016A bonds so they can refinance a $107 million portion of the bonds issued in 2009 to build the plant. This will save Paducah Power almost $10 million in payments over the term of the bonds.
Paducah Power System General Manager Gary Zheng said they got lower rates than they expected. “The sale exceeded our expectations. The demand for the bonds was six times the supply, so we’re extremely pleased with today’s results.” Zheng said.
The utility said it had been watching rates for several weeks so they could take advantage of the market. The Kentucky Municipal Power Agency, of which Paducah Power is a member, saved $9.6 million in a similar move in January.