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Mt Pleasant power system upgrading main substation




The Mt. Pleasant Power System plans to replace 70 year old substation transformers at the Charles Gandy Substation.Albert Kerstiens

The Mt. Pleasant Power System plans to replace 70 year old substation transformers at the Charles Gandy Substation.Albert Kerstiens

The Mt. Pleasant Power System (MPPS) Board of Directors passed a resolution recommending the City of Mt. Pleasant issue of up to $4.5 million in electric revenue bonds.

The resolution was passed on Oct 13 and was approved by the Mt. Pleasant City Commission at their Oct. 19 monthly meeting.

The recommended bond issue consists of two separate parts: refunding $2.3 million in existing long-term debt, and issuing $2 million in new debt for a construction fund.

“What we’re doing is refinancing our existing long-term debt just to take advantage of lower interest rates,” said Albert Kerstiens, the general manager of Mount Pleasant Power System, who also serves the people outside of Mt. Pleasant, including Summertown and Hampshire.

In doing so, Kerstiens said $70,000 will be saved in the long run.

“We only owe 5 more years. We’re just refinancing it for 5 years.”

Kerstiens also said MPPS is setting up a $2,000,000 construction fund.

The construction fund will be used to purchase new transformers for the Charles Gandy Substation on Mt Joy Road.

 

 

“The main power transformers are roughly 70 years old and nearing the end of life,” Kerstiens said.

Mount Pleasant Power System will purchase two transformers at $1,250,000 each.

“While interest rates are low, we want to obtain the funds to change those out and update those to new transformers.

That will increase the reliability for the city of Mt. Pleasant, as well as give us additional capacity for growth,” Kerstiens said.

Kerstiens also assured that this is backed by electric revenue, not taxpayer dollars.

“They are backed solely by the revenues of the electric system. We are not planning on increasing the rates at all.”

The new debt will be amortized over a 15 year term.

Ultimately, Kerstiens said the project is going to bring more reliability to the community.

“It’s going to provide additional capacity for future growth in Mt. Pleasant.”

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