/usr/web/www.marshallindependent.com/wp-content/themes/coreV2/single.php
×

MMU says it will be paying $3M-plus bond early

MARSHALL — This summer, Marshall Municipal Utilities will be paying off a more than $3 million bond early, and it’s largely possible thanks to a change in the utility’s power supplier, MMU General Manager Brad Roos said this week.

A news release from MMU said the Marshall Municipal Utilities Commission voted May 16 to repay part of the utility’s long-term debt. On July 1, MMU’s 2008A public utility revenue bond series will have a total of $3.925 million in outstanding bonds, with an option to either repay the outstanding bonds or refund them at lower interest rates. MMU commissioners voted to repay the bond series using cash reserves.

It’s a move that will save around $500,000 in interest costs, which would have been payable between 2018 and 2023, MMU said.

Roos said one reason it was possible to pay back the bond series early was because MMU is now paying less for electric power. Last July, MMU changed wholesale electric providers, to Missouri River Energy Services, based in Sioux Falls. Missouri River Energy Services had lower costs for electricity than MMU’s previous power supplier.

Besides helping make it possible to pay off the 2008 bonds earlier, Roos said, the switch to Missouri River Energy Services “has been a very positive change for our electric customers.” Less costly wholesale power also means lower electrical costs for customers.

Newsletter

Today's breaking news and more in your inbox

Today's breaking news and more in your inbox
Are you a paying subscriber to the newspaper? *
   

Starting at $4.38/week.

Subscribe Today