Utah power agency sets final bond issue for cleaner fuel transition

Utah’s Intermountain Power Agency (IPA) will wrap up financing for its transition to cleaner fuels with a $114.6 million power supply revenue bond sale next week. 

The deal comes after state lawmakers in June revenue bonds in 2022 to begin financing its transition from a coal-fired plant to more environmentally friendly electricity generation using natural gas and hydrogen. Another $835 million of bonds were sold in 2023.

Cowan said while IPA doesn’t anticipate additional debt for the transition project beyond the upcoming issue, “circumstances may arise that changes that.”

The deal’s $105.5 million of tax-exempt bonds are structured with serial maturities from 2026 through 2045, according to the preliminary official statement. Taxable bonds totaling $9.11 million have serial maturities from 2026 through 2034 and a term bond due in 2045.

Goldman Sachs and RBC Capital Markets are the bonds’ underwriters. Orrick, Herrington & Sutcliffe is the bond counsel and Stifel, Nicolaus & Co is the municipal advisor. 

IPA, a state of Utah political subdivision organized in 1977, has 23 Utah municipalities as members.