Press Releases
BPUB Update on Tenaska Equity Fund
BROWNSVILLE, TX – On Monday, April 10, the Brownsville Public Utilities Board (BPUB) Board of Directors voted to add BPUB’s net interest earned on the $29 million to the Tenaska Equity Fund (TEF). BPUB management determined that the total interest earned on the $29 million was $2,082,611, which was subsequently verified by external auditor Burton McCumber & Longoria, LLP. The City of Brownsville received $208,261 from that amount as part of BPUB’s payment transfers to the city. This leaves BPUB a net amount of $1,874,350, which added to the $29 million already in the TEF brings the total to $30,874,350.
Per Section 24.B. of our Bond Ordinance the interest earned on the funds in the Improvement Fund flows back into the Plant Fund for Operations & Maintenance, and does not stay in the Improvement Fund. BPUB is not required to add the interest to the Tenaska Equity Fund, but BPUB’s Board of Directors voted to add the interest to the existing TEF.
Below is the TEF Distribution Bond Ordinance Section 33L compliance process timeline. The timeline has been updated to reflect new dates due to a delay in BPUB receiving the draft report from Schneider Engineering and the required letters from the rating agencies:
1. April 12-14 – BPUB receives draft report from Schneider Engineering
2. April 17 – Schneider Engineering Report and Certification from the three bond agencies are finalized
3. April 18 – Finalize certificate of designated financial officer
4. April 18-19 – Rating agency calls to discuss preliminary findings of the Schneider Engineering report
5. April 28 – Rating agencies will deliver letters to BPUB confirming that the implementation of the TEF Rebate Plan will not cause withdrawal or lowering of ratings
6. May 1 – BPUB recommends by resolution that the City of Brownsville Commission approves the TEF Rebate Plan based upon a written certification of Schneider Engineering
7. May 2 – The Brownsville City Commission approves BPUB’s recommendation and adopts a resolution determining that following the implementation of the TEF Rebate Plan by the BPUB Board of Directors, BPUB is expected to produce gross revenues in amounts sufficient in each fiscal year while any of the Senior Lien Obligations are to be outstanding to comply with the bond ordinance
8. May 3 – File EMMA notices relating to the TEF Rebate Plan
Timeline dates are subject to change based on third-party availability. The BPUB and City of Brownsville Joint Subcommittee will meet later this month to continue discussions regarding next steps on the distribution of the TEF. BPUB will continue updating customers as more information becomes available through its Website, Facebook and Twitter.