Electric Prepays and What They Can Do For You

One of the most exciting new developments in the energy industry is tax-exempt electric prepays. Most electric prepays have involved prepaying a substantial portion of the tax-exempt utility’s purchased power agreement costs for renewable energy projects. Prepaying these costs tax-exempt can result in substantial savings over the life of the contract.

Another emerging trend involves prepaying a portion of regular market power purchases. This strategy has brought substantial cost savings to public gas utilities for decades and can bring comparable savings to public power utilities on their purchased power costs.

Since Minnesota is a highly preferred state for issuing tax-exempt bonds, MCE is well-positioned to help public power systems realize savings on their power costs through electric prepays.
Regardless of where your public power system is located, MCE can work with you to lower your purchased power costs.