Kentucky Public Energy Authority Issues $750 Million in Bonds for Gas Supply Project
The Public Energy Authority of Kentucky is issuing $750 million in Gas Supply Revenue Refunding Bonds, 2025 Series C, to finance gas supply and refund outstanding debt. Proceeds will refund all outstanding Gas Supply Revenue Bonds, 2020 Series A, acquire additional gas for the Gas Project, and fund capitalized interest.
The PEAK's Gas Project aims to provide secure and economical natural gas supplies through the purchase and sale of gas to municipal utility systems. The bonds are tax-exempt, with maturities scheduled on May 1 and Nov. 1 each year until May 1, 2036, with possible extensions to June 1, 2056.
The securities are primarily payable from PEAK revenues, which included total operating revenues of $352.4 million for the year ending June 30, 2024. Moody's has rated the bonds A1.
