Annual Report - CoBank

E N E R G Y & W A T E R B A N K I N G G R O U PG E ORGIAT R A N S M I S S I O NCorpor at i o nWith a network of nearly 3,000 miles ofpower lines and nearly 600 substations, GeorgiaTransmission Corporation is a critical linkbetween electric generation providers andrural distribution co-ops throughout the state.Today, Georgia Transmission delivers power toalmost half of Georgia’s homes and businesses,and the company is rapidly building newinfrastructure to meet the continuing growth indemand for services. CoBank provides GeorgiaTransmission with financing to build new powerlines, substations and other infrastructure.“In order for us to have 400 projects going atone time, it takes a lot of liquidity to see thoseprojects through to completion,” said BarbaraHampton, senior vice president and chieffinancial officer. “CoBank is very important inthat equation, giving us flexibility in how weaccess the market.”When it comes to building state-of-the-artinfrastructure, Georgia Transmission is on thecutting edge. They recently introduced a newhigh-voltage tower that requires less right-ofwayand is easier to maintain than traditionalhigh-voltage lines. Additionally, GeorgiaTransmission is proactively working with morethan 200 stakeholders to develop routingstrategies that reduce the impact onenvironmentally sensitive and historicallysignificant sites.“We’ve had a long-standing relationship withCoBank,” Hampton said. “They really help usdeliver the most economic and reliable servicesto our members as possible.”S O U T H M I S S I S S I P P IE L E C T R I C P O W E RA S S O C I AT I O NThe timing couldn’t have been more challenging.South Mississippi Electric Power Associationneeded to enhance capacity and efficiency attwo power plants and retrofit a coal-fired plantto meet future clean air requirements during theworst credit crunch since the Great Depression.The price tag: approximately $350 million.“These projects were very key to us and wereneeded to meet the needs of our members,” saidJim Compton, SMEPA general manager and chiefexecutive officer. “When the financial marketsbegan to wobble in 2008, we recognized thatfinancing was going to be a challenge.”SMEPA provides electricity to 11 member-ownedpower distribution cooperatives that serve morethan 400,000 homes and businesses in 56 ruralMississippi counties. Its baseload generatingassets include a coal-fired plant, a minorityinterest in a nuclear facility and several gas-firedplants. SMEPA also maintains 1,710 miles ofhigh-voltage transmission lines.SMEPA sought proposals from several lenders,but ultimately determined that their best solutionwas a credit facility led by CoBank that accessedthe combined capacity of seven other FarmCredit System institutions.“We wanted to achieve as much financingcertainty as possible,” Compton said. “It wasimportant that our financial partners couldlive up to their obligations, and clearly we feltthat going with CoBank and the Farm CreditSystem was the best choice for that. CoBanktruly understands our business and understandsour borrowing needs.”S t r e n g t h a n d s ta b i l i t y 19