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Commission hears update on potential loan to electric utility; no draws made yet
Summary
The commission was told a previously authorized loan to the local electric utility has not been drawn; staff said draws will occur only if operating balances turn negative amid monthly purchase-power bills and pending FEMA reimbursements.
Commissioners received an update on a previously authorized loan to the local electric utility and approved routine financials and invoices.
Staff reported that the city has not yet drawn any of the loan funds the commission had earlier authorized for the electric utility. Staff said draws will depend on the utility’s cash needs and would be triggered only when the utility’s operating balance goes negative. Staff pledged to report any draws at the next commission meeting.
Commission staff described monthly purchase-power bills that, depending on load, have ranged from about $5.8 million to more than $7 million in a month and said the utility is also awaiting FEMA reimbursement for storm-related costs. Staff said the city will measure cash at month-end and draw only as needed to maintain a positive operating balance.
The commission moved, seconded and approved the financials and listed invoices by voice vote.
