The Long Island Power Authority plans to sell $200 million of new-money bonds next year, according to a proposed 2010 budget released last week. LIPA also expects to refund $400 million of outstanding debt next year.
The authority proposed a $3.7 billion operating budget, which would be a $150 million decrease from the approved 2009 budget. It projected it will issue $175 million of bonds in 2011, $140 million in 2012, and $55 million in 2014, according to the proposed budget.
LIPA projects that capital spending will remain nearly flat next year, with $277.1 million proposed for 2010 compared to a projected $278 million this year. Capital spending is expected to rise in 2011 to $313.3 million due to projects related to a transition to “smart grid” technology.
The authority projects it will have $6.75 billion of debt outstanding by the end of 2010. Lower interest rates on outstanding variable rate debt are expected to reduce debt-service costs to $341 million next year, a net $2 million decrease over the current year.