The Long Island Power Authority could refinance some of its $7 billion of outstanding debt through federal loans under a proposal New York Sen. Charles Schumer announced yesterday.

Details of the legislative proposal, which is still being drafted, was unavailable yesterday, according to LIPA president and chief executive officer Kevin Law. It would create a new federal program to provide low rate loans from the U.S. Department of Energy to publicly owned electric utilities for capital projects and to refinance debt. The federal government could also act as a guarantor on bond issues, Law said.

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