PPL plans to refinance $150M bond issue

By Karen Blackledge
The Daily Item

December 02, 2008 06:14 am

— WASHINGTONVILLE -- Air pollution control equipment at the Montour Generating Station is among projects that would be refinanced by a $150 million bond issue.
PPL is seeking approval for refinancing of the bonds at a lesser interest rate.
The interest rate is not known yet since it is market-driven, Craig Petrasic, assistant director of the Pennsylvania Economic Development Financing Authority in Harrisburg, said Monday.
The authority will hold a public hearing Dec. 15 in Harrisburg on the request.
According to a notice filed by the authority, the refinancing is for installation of limestone forced-oxidation flue gas desulfurization systems or sulfur dioxide scrubbers at three electric generating stations.
A refinancing of $90 million in bonds, approved in September by the Montour County Industrial Development Authority, is part of the request, Petrasic said. The county authority voted to serve as the local applicant for the reissuing of the bonds, which previously had been financed through the Lehigh County Industrial Development Authority.
PPL revenues will be used to pay back the bond issue, which is from 2003.
The county authority will incur no liability and the county doesn't collect any fee for this, authority solicitor Robert Marks Sr. said at the time.
The bond issue financed pollution control projects at PPL's coal-fired electricity generating plants, including the Montour Generating Station, which is near Washingtonville.
The Dec. 15 hearing, beginning at 9 a.m., includes projects at the Montour station, owned and operated by PPL Montour LLC; Brunner Island Generating Station, owned and operated by PPL Brunner Island LLC in York Haven; and Keystone Generating Station, operated by Reliant Energy Mid-Atlantic Power Holdings and owned jointly by PPL Montour, Exelon Generation Co., PSEG Fossil, Constellation Power Source Generation, Reliant Energy Mid-Atlantic Power Holdings, Keystone Power and Duquesne Keystone. The Keystone Generating Station is in Armstrong County.
Petrasic said no comments have been received from the public for the hearing.
n E-mail comments to kblackledge@dailyitem.com.