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PSC approves non-opposition letters for cooperative and utility financing; BrightSpeed refinancing cleared
Summary
The Commission expressed non-opposition to several financing requests, including 1803 Electric’s $41.5M drawdown loan (plus a $22M bridge), DEMCO’s $236M FFB loan, and Bright Speed’s asset pledge tied to parent refinancing; staff found no immediate rate impacts and conditions were applied.
The Commission voted to express non-opposition to a series of loan and financing requests from electric cooperatives and utilities.
1803 Electric Corporation requested authorization to secure a drawdown loan of approximately $41.5 million (with a supplemental $22 million bridge loan) to acquire transmission assets and improve capital projects; staff recommended non-opposition and commissioners approved the recommendation after company representatives described expected drawdown mechanics and timing.
DEMCO (Dixie Electric Membership Corporation) sought Commission non-opposition to secure a roughly $236 million loan to support a four‑year construction work plan and to mortgage assets as security. Staff recommended non-opposition subject to standard loan conditions and the Commission approved the recommendation following remarks that federal funds and 30‑year financing would reduce near-term rate effects.
Bright Speed of Louisiana and Bright Speed of South Arkansas requested non-opposition to granting security interests and guarantees in connection with a $7 billion parent-company refinancing; staff assessed no adverse customer impact and the Commission approved non-opposition with conditions from staff’s report.
Staff repeatedly noted that non-opposition to financing arrangements is not an approval of rates; any cost recovery consequences would be determined in later ratemaking or review dockets.
