P.E.I. borrows $31M in energy accord refinancing
P.E.I. Energy Accord was first signed with Maritime Electric in 2010
The Prince Edward Island Energy Corporation has been given cabinet approval to borrow more than $31 million as part of an agreement with Maritime Electric.
The money is being used to refinance debt associated with the refurbishment of the Point Lepreau Nuclear Generating Station and the decommissioning of the Dalhousie Thermal Generating Station.
Energy Minister Paula Biggar said it is part of the previous P.E.I. Energy Accord.
The accord was set up in 2010. Under that agreement Maritime Electric lowered electricity rates for Islanders, and in exchange the government signed a loan on behalf of the utility, taking advantage of its borrowing power to get a lower interest rate than the utility could.
That accord expired earlier this year, and a new three-year agreement on electrical rates has been set up.
Biggar said the refinancing of the outstanding loan balance of $31.34 million includes the conversion of short-term loans to long-term loans, and a lower rate of interest for the balance.
She said the savings should help to reduce and stabilize electricity rates in the coming years.
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