BPUB Provides Update on Tenaska Equity Fund Distribution
BROWNSVILLE, TX – The Brownsville Public Utilities Board (BPUB) is working to determine its options for distributing the remaining $29 million from the Tenaska Equity Fund (TEF). Before any of that money is distributed, BPUB is required to satisfy the terms of its bond ordinance.
Any distribution of the TEF requires BPUB demonstrate that this “will not impair the reliability, efficiency or availability of utility service required to be delivered to the customers of the system,” according to the Special Covenants of BPUB Bond Ordinance 2022-1700 Section 33L.
During the BPUB Board Meeting on Monday, Jan. 9, BPUB Chief Financial Officer (CFO) Miguel Perez presented a preliminary timeline from January to late April describing the mandatory four-step process.
The four-step process BPUB must follow to ensure compliance is as follows:
- Designated financial officer issues certificate attesting system will generate sufficient revenues to cover debt service obligations.
- Governing body makes a finding and determination in alignment with the certificate issued by the designated financial officer.
- BPUB Board recommends action based on written certification from nationally recognized consulting engineering firm.
- Rating agencies provide letters affirming action will not result in a withdrawal or lowering of rating.
At the Jan. 9 board meeting, the BPUB board approved the CFO moving forward with these steps, including beginning the process of identifying and engaging the necessary engineering firm to begin the certification.
In anticipation of approval, BPUB Board members Joseph Hollmann and Patricio Sampayo and City of Brownsville officials will meet at the City of Brownsville’s Joint Subcommittee meeting today, Jan. 13 to discuss the distribution of the TEF. BPUB will continue to update customers as more information becomes available through its website, Facebook and Twitter.