Western Minnesota Municipal Power Agency announces details of plan to sell tax-exempt bonds
Western Minnesota Municipal Power Agency (Western Minnesota) plans to price approximately $320 million of tax-exempt fixed-rate bonds the week of June 23, 2014 through a negotiated sale.
The largest portion of proceeds of the sale will be used for the development, construction, and equipping of the Red Rock Hydroelectric Project. The project will add hydroelectric generating facilities to the existing Red Rock Dam located on the Des Moines River near Pella and Knoxville in Marion County, Iowa. The power plant will have a nameplate capacity of 36.4 megawatts – enough to power about 18,000 homes.
In addition to the Red Rock project, a portion of the proceeds of the sale will be used to fund the remainder of Western Minnesota’s share of the CapX 2020 transmission projects and for capital additions at existing generation and transmission facilities.
The sale will be led by book-running senior manager Citigroup with J.P. Morgan, Barclays, Wells Fargo, and US Bank serving as co-managers. There also will be a selling group consisting of Cronin & Co., D.A. Davidson, Edward D. Jones, Northland Securities, and RBC Capital Markets. A Preliminary Official Statement is expected to be available the week of June 16.
Western Minnesota is a municipal corporation and political subdivision of the State of Minnesota and has financed the construction and acquisition for all of the electric generating and transmission facilities used to serve the municipal members of Missouri River Energy Services (MRES). The 23 members of Western Minnesota also are members of MRES.
MRES is a not-for-profit joint-action agency that provides wholesale electricity and energy services to 61 member municipalities in the states of Iowa, Minnesota, North Dakota, and South Dakota. All MRES members own and operate local electric distribution systems.
Western Minnesota and MRES have a power supply agreement under which Western Minnesota sells to MRES all of the output of its generating and transmission facilities. MRES provides all administrative services for Western Minnesota.