Bonds to finance Grant PUD projects

EPHRATA - Grant County PUD is issuing $42 million in federal, low interest bonds to pay for new turbines and generators at Wanapum Dam.

The resolution passed this week declares the district's intent to reimburse itself for capital expenditures made from its 2010 general construction fund, said Sarah Morford, a district spokesperson.

The district made the expenditures anticipating future Clean Renewable Energy bond financing proceeds and already expended the dollars, she said.

It appears federal tax law requires municipalities like Grant PUD to declare in advance its intent to issue bonds for the purpose of reimbursing prior expenditures, she said.

The district is presently working on replacing eight out of its 10 turbines, she said.

In 2009, officials with the U.S. Treasury Department said Grant PUD's project was among 805 nationwide to receive authority to issue the bonds, according to information provided by the district.

Wanapum Dam was eligible for $140 million in bonds, which was part of a $2.2 billion distribution.

Public power organizations received $800 million and Washington state was given $500 million.