JPMorgan Chase led the bank syndicate on a $600 million revolving credit facility for the New York Power Authority. The NYPA board of trustees approved the revolver to support its issuance of commercial paper notes to support its established energy-efficiency programs for customers.
Other members of the syndicate included TD Bank, State Street Bank and Trust Company and Wells Fargo Bank.
The revolver for short-term borrowing will be available through January 2022, with two one-year extensions if needed by NYPA.
“Having access to this revolving credit facility will enable NYPA to expand our range of energy efficiency programs for our customers,” said Gil C. Quiniones, NYPA president and CEO. “Our customers are just as committed as we are to reducing greenhouse gases and these solutions will help us achieve that goal.”
NYPA offers a comprehensive array of energy efficiency programs for its customers, including New York state’s universities, municipalities, school districts and largest cities. Among NYPA’s suite of customer energy solutions are design-build energy project services, digital energy management and demand response capabilities.
The approval of the revolving credit facility will help NYPA fulfill aggressive energy efficiency programs for utilities approved by the New York State Public Service Commission last week, as well as help reach Governor Andrew Cuomo’s goals to reduce greenhouse gases 40% by 2030 and make all electricity used in New York 100% carbon neutral by 2040.
The new revolver will replace an existing revolving credit agreement set to expire on January 18.
NYPA currently has $531 million of Series 1, 2 and 3 commercial paper notes outstanding to support numerous projects across the state.
The syndicate was chosen following a request for proposal issued October 9, 2018, that required interested banks to have a short-term credit rating of A-1/P-1/F1+ or comparable from Standard & Poor’s, Moody’s Investor Services and Fitch Ratings.
NYPA is the nation’s largest state public power organization, through the operation of its 16 generating facilities and more than 1,400 circuit-miles of transmission lines. NYPA uses no tax money or state credit, financing its operations through the sale of bonds and revenues earned in large part through sales of electricity. More than 70% of the electricity NYPA produces is clean renewable hydropower.
