Bond issue would pay for energy projects

A measure that would allow the city to borrow about $50 million or more for electrical utility improvement projects could be included on the Columbia ballot as early as August.

The bond money would be combined with utility rate increases to pay for improvements and maintenance of Columbia’s electrical transmission and distribution systems. The Columbia City Council and Water and Light Advisory Board are finalizing the list of projects to be funded and deciding how much money to borrow, said Connie Kacprowicz of the Water and Light Department.

The systems that would be helped by issuing bonds involve getting power out to the customers, Kacprowicz said. The projects include improvements to transmission lines that bring electricity into the city and distribution systems that deliver power to customers. Part of the money would be used to pay for a renewable energy project that converts methane gas released at the city landfill into usable energy, she said.

The improvements are being sought because the city’s growth has resulted in greater demand for power.

“In general, Americans are using more electricity,” Kacprowicz said. “People have more appliances such as cell phone chargers and computers that are left on all day.”

Before the bond measure can go to the voters, the City Council and the Water and Light Advisory Board must decide how much to borrow and increase utility rates.

City Council member Bob Hutton said the bond issue is necessary because the work must be done, but the council is looking for a way to fund the projects that would least affect rates.

“No matter what, it’s the same amount of money,” Hutton said. “It’s a matter of how much of the project to bond and how much to pay for with operating money.”

Kacprowicz said the city is looking for the combination of borrowing and rate increases that will result in the lowest cost to customers over the long run.

Issuing bonds for part of the money is cheaper than only using rate increases for large capital improvements, Kacprowicz said, but only using bonds also would reduce the amount of money the city has in reserve.