CU refinances bond debt tied to John Twitty Energy Center

City Utilities of Springfield has refinanced debt the utility provider took on through the 2006 construction of the second unit at John Twitty Energy Center.

New bonds were issued June 18 to replace 2006-issued bonds in the amount of $615 million, according to a news release. CU now owes $307 million and expects to pay off the debt in 2036.

CU officials expect the refinancing to save customers roughly $1.3 million annually.

CU received approval from both the Board of Public Utilities, the utility’s governing board, and Springfield City Council earlier this year to refinance the bonds.

"Due to market volatility this spring, City Utilities waited to finalize the timing of the issuance to ensure the best financial outcome," CU officials said in the release. "This refinancing effort is one of the many strategies City Utilities employs to ensure long-term affordability and value for its customers while continuing to provide safe, reliable services to the Springfield community."

John Twitty Energy Center, a 300-megawatt coal-fired plant, is located in southwest Springfield near the James River Freeway and Sunshine Street interchange.