Oglethorpe Power eyes more than $2 billion of liquidity by mid-June

By Jennifer Lanning Drey

Savannah, Ga., May 19 - Oglethorpe Power Corp. had $818 million of liquidity at May 17 and expects to increase the figure to more than $2 billion by mid-June, Elizabeth Higgins, Oglethorpe's chief financial officer, said Thursday during the company's earnings conference call for the first quarter.

Oglethorpe is working to increase the revolving credit facility backing its commercial paper program to $1.3 billion from $475 million. In addition to other credit facilities, Oglethorpe plans to maintain $300 million to $400 million of cash.

The company had $379 million of cash at May 17.

Oglethorpe is looking to increase its liquidity in light of its Vogtle nuclear project under construction through 2017, three recent acquisitions that required interim financing and liquidity used for credit support for its variable-rate demand bonds, Higgins said.

The company believes it has received commitments from about 12 banks that will comprise the upsized revolver and hopes to close on the facility by mid-June, she said.

Vogtle funding on track

Regarding permanent financing for Oglethorpe's Vogtle 3 and Vogtle 4 project, Higgins said the company has received no news of anything that would deter its expected Department of Energy financing.

Oglethorpe signed a conditional term sheet with the Department of Energy about a year ago and will be working with the agency through the rest of this year to get definitive agreements in place.

The final decision on loan approval is not expected until after approval of the combined construction permits and operating licenses, which is expected in the fourth quarter of 2011.

Oglethorpe is planning a taxable bond issue in the fourth quarter for about $400 million in connection with the Vogtle project.

Higgins also said the company expects to draw upon already approved financing from the Rural Utilities Service for its Hartwell and Hawk Road by the end of the second quarter.

The company believes its submitted loan application made for Rural Utilities Service financing for its Murray Energy facility will be approved by the end of the fiscal year.

The electric utility is based in Tucker, Ga.

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