AIDEA approves bonds for Lake Dorothy

The Alaska Industrial Development and Export Authority Board approved issuance of up to $60 million of tax-exempt conduit revenue bonds to finance construction of the Lake Dorothy Hydroelectric Project to serve the Juneau area at a March 29 meeting.

Aidea said Alaska Electric Light and Power Co., Alaska’s oldest certificated utility, will own and operate the system. The Lake Dorothy project will tie into the utility’s existing distribution system.

A portion of the bond proceeds will pay for other capital improvements to the utility’s generation and distribution system. Aidea said because these are conduit revenue bonds, the issuance will not involve the general credit or assets of the authority.

“Aidea has an excellent and long-standing working relationship with AEL&P, which operates the Aidea-owned Snettisham hydro project,” the authority’s executive director Ron Miller said in a statement. “We were pleased that AEL&P asked for our assistance with the Lake Dorothy Project. Because these bonds are tax-exempt, AEL&P’s customers will save approximately $6 million over the term of the bonds. This financing will help keep AEL&P’s electric rates among the lowest in the state.”

—Petroleum News