(Iowa) PEFA, Inc. issued $949 million in Gas Project Revenue Bonds – Series 2026A on Thursday, June 4.
The bond proceeds will be used to prepay the cost of acquiring a fixed quantity of natural gas that will be delivered over the next 30 years. The natural gas will be purchased from a supplier at a discount to index pricing.
A total of 104 municipal gas utilities from nine states are participating in the project, including 42 utilities in Iowa. The participating utilities are expected to realize combined savings of approximately $3.2 million annually through the long-term natural gas supply arrangement.
The gas supply will come from Goldman Sachs Group, Inc. through its natural gas supplier, J. Aron & Company LLC. Clayton Energy Corporation will serve as the Gas Manager for the project, while Ahlers & Cooney, P.C. served as bond counsel for PEFA.
PEFA, Inc., the bond issuer, is a separate legal entity and nonprofit public benefit corporation organized under Iowa law. The organization was created by the Public Energy Facilities Authority, an Iowa joint powers authority formed under Chapter 28E of the Iowa Code, to finance the Gas Project.
Iowa Participants: Alton Municipal Utilities, Bedford City Municipal Gas, City of Bloomfield, Brighton Municipal Gas System, Brooklyn Municipal Utilities, Cascade Municipal Utilities, Clearfield Natural Gas Company, Coon Rapids Municipal Utilities, Emmetsburg Municipal Utilities, Everly Municipal Utility, Fairbank Municipal Gas, City of Gilmore City, Town of Graettinger, City of Guthrie Center, Harlan Municipal Utilities -the Gas Utility of the City of Harlan, City of Hartley, Hawarden Municipal Utilities, City of Lake Park, Lenox Gas System, Lineville Municipal Natural Gas System, City of Manilla, Manning Municipal Natural Gas, City of Mapleton, Morning Sun Municipal Natural Gas System, City of Orange City, City of Preston, Remsen Municipal Utilities, City of Rock Rapids, Rolfe Municipal Gas, Sac City Municipal Gas Company, City of Sabula, Sanborn Municipal Gas Utility, Sioux Center Municipal Gas, City of Tipton, Traer Municipal Utilities, City of Wall Lake, Wayland Municipal Gas, Wellman Gas System, West Bend Municipal Gas, Whittemore Municipal Utilities, Winfield Municipal Gas and Woodbine Municipal Natural Gas.
