New California power agency chooses bond underwriters
Date: 13-May-02
Country: USA
The nine-month-old California Consumer Power and Conservation Financing Authority - commonly known as the California Power Authority - issued an investment plan in February that proposed financing 3,500 megawatts of "clean" power to strengthen the state's power reserves by 2006.
The agency's board last week approved nine investment banks to assist the CPA in future bond financings. They are Bear, Stearns & Co.; Merrill Lynch & Co.; Salomon Smith Barney; J.P. Morgan Chase & Co.; UBS PaineWebber Inc.; Morgan Stanley; Lehman Brothers; Goldman, Sachs & Co. and E. J. De La Rosa & Co.
The plan calls for work to begin in fiscal 2002-2003 to develop more than 1,800 megawatts of new reserves at a cost of $2 billion.
Up to $5 billion of bonds will be sold to finance future projects, with repayment coming from sales of power to investor-owned utilities.