July (pdf) - New York Power Authority

Rate Covenant..................................
The Authority has covenanted in the General Resolution that it
shall at all times maintain rates, fees or charges sufficient, together
with other moneys available therefor, to pay all Operating Expenses
of the Authority and to pay the debt service on all Obligations,
including the 2011 Bonds. See ‘‘PART 1—SECURITY FOR THE
2011 BONDS.’’
The Authority is a party to various power sales agreements which
impose limitations on the Authority’s discretion to establish rate
increases. See ‘‘PART 2—POWER SALES.’’
Application of Proceeds...................
General Resolution Funds...............
The proceeds of the 2011 Bonds will be used to refund
approximately $77,215,000 of the Authority’s Series 2000 A
Revenue Bonds, to refund approximately $41,720,000 of the
Authority’s Series 2002 A Revenue Bonds, to refund up to
$200,000,000 of the Authority’s Extendible Municipal
Commercial Paper Notes and/or Commercial Paper Notes, and
to pay the costs of issuance of the 2011 Bonds. See ‘‘Part 1—
APPLICATION OF THE 2011 BOND PROCEEDS.’’
Two funds are established under the General Resolution: the
Operating Fund and the Capital Fund, both held by the Authority.
The Authority may also establish additional funds and accounts.
Amounts in the Operating Fund shall be used in the following
order of priority: to pay Operating Expenses; to pay debt
service on Obligations, which includes the 2011 Bonds and Parity
Debt; to pay debt service on any Subordinated Indebtedness and
Subordinated Contract Obligations; for withdrawal and deposit in
the Capital Fund; and for withdrawal for any lawful corporate
purpose, provided that such amounts are not needed at the time of
such withdrawal to pay Operating Expenses or debt service as
described above. See ‘‘PART 1—SECURITY FOR THE 2011
BONDS.’’
The Authority shall from time to time, and in all events prior to
any withdrawal of moneys from the Operating Fund for lawful
corporate purposes, as described above, determine the amount, if
any, to be held for reserves in the Operating Fund.
Amounts in the Capital Fund shall be applied for the Capital
Costs of the Authority, but must be applied to the payment of
debt service on the Obligations, including the 2011 Bonds and
Parity Debt, if needed.
Additional Indebtedness;
Parity Debt...................................... As of June 30, 2011, the Authority had outstanding
$1,134,375,000 in principal amount of Revenue Bonds, which
are Obligations on a parity with the 2011 Bonds. As of June
30, 2011, the Authority had outstanding $122,935,000 of
Adjustable Rate Tender Notes issued in 1985 (the “ART
Notes”), which are on a parity with the Revenue Bonds,
including the 2011 Bonds.
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