WASHINGTON - The North Carolina Eastern Municipal Power Agency on Wednesday plans to sell $80 million of fixed-rate bonds and use about one-third of the proceeds to get out of an interest rate swap for a variable-rate deal it never got the chance to sell.

The NCEMPA will pay $25.2 million to terminate a forward-starting swap it has had with Citigroup Global Markets Inc. since 2006. The swap became effective in October 2008 when the utility planned to issue a variable-rate deal to refund some fixed-rate debt. The credit crisis upset those plans, and now the cost of a variable-rate sale exceeds the termination expense.

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