Florida Municipal Power Agency has closed on the sale of $208,830,000 in municipal bonds for its All-Requirements Project (ARP) to finance capital projects, refinance existing project debt and tender a portion of Series 2016A Bonds, FMPA said on Aug. 13.
The sale netted nearly $13.1 million in gross savings.
The ARP, FMPA’s largest power supply project, provides all the wholesale power needs of 13 Florida municipal electric utilities including Bushnell, Clewiston, Fort Meade, Fort Pierce, Green Cove Springs, Havana, Jacksonville Beach, Key West, Kissimmee, Leesburg, Newberry, Ocala and Starke. The savings will reduce future power costs for these cities.
The savings begin at approximately $0.4 million in 2025, steadily rising to $3.2 million in 2029 and 2030 and peaking at $4.4 million in 2031. The final maturity date for the refunding bonds is the same as the original issues being refunded, with new money proceeds maturing in 2034 and 2035.
“Our team is dedicated to identifying and analyzing the best opportunities for savings for our ARP members, so they can best serve their residents and customers,” said Rich Popp, FMPA’s chief financial officer. “This tender transaction speaks to the team’s dynamic thinking and is strategic to our mission of providing affordable and reliable power to the members we serve.”
The bonds received strong credit ratings of AA- from Fitch Ratings and A2 from Moody’s Investors Service. Both rating agencies cited the All-Requirements Project’s very strong financial profile, prudent financial management, and well-maintained and diverse portfolio of generating assets.
FMPA’s All-Requirements rates have decreased over 20% since 2022, and for FY 2025, they will be the second lowest inflation-adjusted energy costs to ARP Members in FMPA’s history.
The bonds’ lead underwriter was JP Morgan in a negotiated sale.
