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6) 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 />7) If we proceed, still have a way out of the agreement with specified off ramps. <br />Con's <br />1) 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 />2) Status of deregulation is still in flux. Adequate transmission is still key to <br />functioning wholesale electric market system. <br />3) MMTG/CMMPA arrangement at this time is still somewhat loose. <br />Constructional arrangements are not clear and still in development. <br />4) Rate of return not as large as hoped. <br />5) Due to unknown, there is some risk. <br />6) We would be a very small fish in a big sea when it comes to input & <br />influence. Small influence in budgeting process. <br />7) 4 to 5 year lead time before we see benefits. (Certificate of need process and <br />construction). <br />8) Building transmission is seen as negative to public. New transmission to <br />support renewable energy may help mediate negativity. <br />9) Additional bonding ties up capital for coverage. (Cash flow to support 150% <br />principal and interest payments). <br />Staff recommends that authorization be given to proceed and the attached resolution be <br />adopted. <br />