PUD 3 Bond Sale Reduces Debt, Creates Savings

Two of the nation’s top bond rating firms have reasserted their high opinion of Mason PUD 3’s financial health. The endorsement led to an impressive bond sale in late January to refinance PUD 3 debt and create long-term savings for the utility.

With interest rates at historically low levels, PUD 3 refinanced its 2010B (Build America) Bonds resulting in present value savings of $10.4 million or 18.5% of the refunded bonds. Given the low-interest-rate environment, it was advantageous for the district to borrow new money to finance capital improvements with minimal impact on annual debt-service payments.

Standard & Poor’s (S&P) recently affirmed PUD 3’s A+ bond rating. Moody’s Investor Service maintained the PUD’s rating as AA3.

“High ratings from Standard and Poor’s, and Moody’s Investor Service – along with good timing – attracted a broad range of investors to our bond sale,” said Annette Creekpaum, Mason PUD 3 manager. “PUD 3 bonds are strong investments. We work hard for consistently strong financial performance and the maintenance of very low debt.”

Commissioners Linda Gott and Tom Farmer accompanied Creekpaum and other PUD 3 staff to New York in January. The three called into the PUD 3 Commission meeting on January 28th.

PUD 3 has won 14 straight Government Finance Officers Association awards of excellence for its annual reports and has experienced over 38 consecutive years of excellent audits from the Washington State Auditor’s Office.

The PUD is a diamond-level Reliable Public Power Provider (RP3) in Washington State, as designated by the American Public Power Association (APPA). The PUD is also a “Smart Energy Provider,” so named by the American Public Power Association.