The Chattanooga City Council unanimously voted Tuesday to approve up to $150 million in new bonds for EPB, with the local utility saying the money will go to expand and improve its electrical grid.
The $150 million in new borrowing comes as a part of EPB’s broader $430 million capital improvement plan through 2031. Financial documents accompanying the proposal describe the utility’s ongoing work to expand its electrical distribution network, develop battery storage, improve grid reliability, accommodate residential and commercial growth and invest in renewable energy.
According to EPB Chief Financial Officer Mike Kaiser, the new bonds will go to pay for the utility’s ongoing electric-system capital program, including transformers, equipment, infrastructure and facilities needed to maintain the local electric system, though specific projects are not earmarked.
The bonds will be repaid specifically through revenue and not city taxes, according to the resolution. The utility expects to pay approximately $8 million annually in principal and interest on the new $150 million bond issuance, Kaiser said by email.
The borrowing would not immediately impact the bills of EPB’s 205,000 customers across Southeast Tennessee and Northwest Georgia, Kaiser said.