BPA's debt management policy is aimed at optimizing its total debt portfolio to keep power and transmission rates low, reduce debt service costs on outstanding debt, and secure access to capital for the agency’s generation and transmission investments.
The Treasury organization manages BPA’s total debt portfolio which includes both Federal and non-Federal debt. Below is an outline of the various functions preformed in the Treasury organization:
· Non-Federal debt management: develop overall financial initiatives to strengthen BPA’s financial health and maintain its strong bond credit rating. Non-Federal debt management duties include relationship responsibilities with the national financing community, rating agencies, investment banks, and bond investors. Other functions include preparation of the agency’s interest rate policy and analysis regarding the repayment of debt.
· Federal debt management: efficiently use BPA’s limited U.S. Treasury borrowing authority that is currently capped at $7.7 billion
Through the active management of Federal and non-Federal debt, BPA has worked to lower the weighted average interest rate on its total debt portfolio to its current 4.8 percent as of Sept. 30, 2012. BPA's total debt and long-term obligations total $14.1 billion as of Sept. 30, 2012. The total debt portfolio is comprised of appropriated debt; Treasury (Federal) bonds that BPA currently issues to the U.S. Treasury under recently negotiated market terms and conditions, non-Treasury (non-Federal) municipal Energy Northwest debt backed by BPA; plus other municipal non-Federal debt backed by BPA; and capital leases.
For a variety of purposes BPA staff conducts briefings on BPA's debt management practices and access to capital issues. This site presents easy reference to those briefings and other debt management material.
Links to other pages related to Debt Management initiatives and Treasury actions: