TIME FRAME: 2017-2018

Financing Electric Service Area Expansion

CASE STUDY: The Village of Slinger, Wisconsin

The Goal

In 2017, the Village of Slinger struck an agreement with the Wisconsin Electric Power Company to transfer service area territory to the Village of Slinger by the power company that was previously served. The Slinger Electric Utility needed to issue debt to successfully fund the transfer.

The Solution

Village officials engaged Ehlers to provide financial planning and debt issuance services. Acting as the Village’s long-standing Municipal Advisor, Ehlers prepared offering documents for the territory’s purchase. The Village’s Bond Counsel identified a problem with issuing the entire tranche of debt as tax-exempt. Ehlers quickly worked with attorneys to create a financing plan comprised of two separate series of debt obligations that raised the needed capital, kept interest costs in check and minimized tax implications.

The Results

In July 2018, the Utility issued both series of revenue bonds through a competitive sale. Total interest cost was on par with projections and the Utility successfully completed the transfer of territory.