The Northern California Power Agency’s finance committee this week decided to refund $134.9 million of variable-rate demand obligations backed by MBIA Insurance Corp.

The agency — which generates and transmits electricity for 20 member agencies across northern and central California — plans to refund $87 million of VRDOs issued in 2002 and $55 million issued in 2003, NCPA chief financial officer Donna Stevener said in an interview. Rates on the two series of bonds jumped to about 7% from around 2% after MBIA lost its triple-A ratings.

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