HomeMy WebLinkAboutPower Project Fund Loan Program Fact Sheet 04-2019-APOWER PROJECT FUND LOAN (PPF)
CURRENT STATUS
There are eighteen active Power Project Fund (PPF) loans totaling $29.5 million approved
for funding for projects in the following communities/regions: Akhiok, Arctic Village, Atka,
King Cove, Koliganek, Kwigilingok, Larsen Bay, Newtok, Pelican, Port Alsworth, Prince of
Wales Island, Railbelt, Sand Point, Takotna, Tanacross, and Tuntutuliak.
PROGRAM OVERVIEW
The Power Project Fund (PPF) loan program provides loans to local utilities, local
governments or independent power producers for the development, expansion or upgrade
of electric power facilities, including distribution, transmission, efficiency and conservation,
bulk fuel storage and waste energy.
The loan term is related to the productive life of the project, but cannot exceed 50 years.
Interest rates vary between tax‐exempt rates at the high end and zero on the low end. The
tax‐exempt rate is equal to the average weekly yield of municipal bonds for the 12 months
preceding the date of the loan application. As of April 1, 2019 this rate was 3.86 percent.
The interest rate can be adjusted downward in certain circumstances to improve financial
feasibility. Loan requests of more than $5 million require legislative authorization to apply.
LOAN FUND STATUS
As of March 31, 2019, the outstanding balance of AEA’s Power Project loans was
approximately $23.9 million.
APRIL 2019
As of March 31, 2019:
Cash balance $14,481,442
Outstanding undisbursed commitments $ 3,704,152
Operating budget commitment (FY19) $ 331,581
Operating budget commitment (FY20) $ 995,500
Uncommitted Cash Balance $10,777,290
QUICK FACTS
Hydro, 6
Wind, 2
Biomass, 1
Diesel Powerhouse, 8
Distribution, 1
$3.7 million in
undisbursed
commitments
Loans in fixed
line of credit
period include
1 hydro and 1
diesel
powerhouse
project
~$10.8 million
uncommitted
cash balance
FOR MORE INFO
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