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<br />6) <br />7) <br />Con's <br />1) <br />2) <br />3) <br />4) <br />5) <br />6) <br />7) <br />8) <br />9) <br /> <br />Has no effect on bond rating or future borrowing as long as cash flow can <br />support debt payment & electric rates stay in line. <br />If we proceed, still have a way out of the agreement with specified off ramps. <br /> <br />MISO is a very imperfect system at high cost, but the electric industry has <br />gone too far down the road to turn back. <br />Status of deregulation is still in flux. Adequate transmission is still key to <br />functioning wholesale electric market system. <br />MMTG/CMMP A arrangement at this time is still somewhat loose. <br />Constructional arrangements are not clear and still in development. <br />Rate of return not as large as hoped. <br />Due to unknown, there is some risk. <br />We would be a very small fish in a big sea when it comes to input & <br />influence. Small influence in budgeting process. <br />4 to 5 year lead time before we see benefits. (Certificate of need process and <br />construction). <br />Building transmission is seen as negative to public. New transmission to <br />support renewable energy may help mediate negativity. <br />Additional bonding ties up capital for coverage. (Cash flow to support 150% <br />principal and interest payments). <br /> <br />Staff recommends that authorization be given to proceed and the attached resolution be <br />adopted. <br />