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NYPA board approves $600 million credit line to finance energy-efficiency programs

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Tue, Dec 18th 2018 09:55 am

The New York Power Authority board of trustees has approved a $600 million revolving credit facility that will support NYPA’s issuance of commercial paper notes to support its established energy-efficiency programs for customers.

The revolving credit facility for short-term borrowing would be available through January 2022, with two one-year extensions if needed by NYPA.

The bank syndicate, which is led by JPMorgan Chase, also includes TD Bank, State Street Bank and Trust Company and Wells Fargo Bank.

“Having access to this revolving credit facility will enable NYPA to expand our range of energy-efficiency programs for our customers,” said Gil C. Quiniones, NYPA president and CEO. “Our customers are just as committed as we are to reducing greenhouse gases and these solutions will help us achieve that goal.”

NYPA offers a comprehensive array of energy-efficiency programs for its customers, including the state’s universities, municipalities, school districts and largest cities. Among NYPA’s suite of customer energy solutions are design-build energy project services, digital energy management and demand response capabilities.

Such projects have saved customers hundreds of millions of dollars in energy costs and will help reach Gov. Andrew Cuomo’s goals to reduce greenhouse gases 40 percent by 2030, and make all electricity used in New York 100 percent carbon neutral by 2040. The approval of the revolving credit facility will also help NYPA fulfill aggressive energy-efficiency programs for utilities approved by the New York State Public Service Commission last week.

The new revolving credit facility will replace an existing revolving credit agreement set to expire on Jan. 18. NYPA currently has $531 million of series 1, 2 and 3 commercial paper notes outstanding to support numerous projects across the state.

The syndicate was chosen following a request for proposal issued Oct. 9 that required interested banks to have a short-term credit rating of A-1/P-1/F1+ or comparable from Standard & Poor’s, Moody’s Investor Services and Fitch Ratings.

NYPA is the nation's largest state public power organization, through the operation of its 16 generating facilities and more than 1,400 circuit-miles of transmission lines. For more information, visit www.nypa.gov.

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