On June 23, the Utah Associated Municipal Power Systems entered into a prepay agreement with a Georgia-based nonprofit, Main Street Energy, with extensive experience providing discounted energy supplies to municipalities from prepayment transactions.
Under the agreement, UAMPS will receive energy over a term of thirty years at a discount to market index pricing. The discounted energy is being supplied to the transaction by Citigroup, also an experienced prepayment supplier.
UAMPS Board Chair Rick Hansen stated, “This agreement is highly beneficial to participating members and aligns with UAMPS’ mission of providing affordable and reliable power for our communities.”
The tax-advantaged municipal prepayment structure is especially valuable because it allows UAMPS to secure approximately $4.7 million in annual savings for participating members. The unique structure of the transaction allows UAMPS’ flexibility to manage its portfolio as member needs and market conditions evolve.
Hansen also stated, “This agreement was made possible through the diligent work and support of UAMPS staff and partners.” UAMPS worked with financial advisory firm PFM and bond counsel Chapman and Cutler to secure the agreement.
Agreements like this allow community-owned power systems to align long-term energy needs with innovative financing structures that can deliver meaningful savings for participating members.
UAMPS is a full-service interlocal agency that provides comprehensive wholesale electric energy services to 50 member communities in Utah, Arizona, California, Idaho, Nevada, New Mexico, and Wyoming.
