Tax-Exempt Bonds In Danger Of Elimination

According to the U.S. Conference of Mayors, the elimination of tax exemption would raise borrowing costs by a projected $833 billion between 2026 and 2035, a cost that would be passed onto taxpayers and lead to a $6,555 tax and rate increase for each American household over the next decade.

We’re working with our industry and government partners to educate Congress on the important role these bonds have played in public power communities in Georgia and across the country. Tax-exempt bonds have enabled economic development and raised standards of living to millions, thanks to their low cost of capital and risk profile.

It was a $450 million in tax-exempt bond offerings in 1977 that enabled MEAG Power to purchase its first ownership stake in Plants Vogtle, Hatch, Wansley and Sherer, starting us on the path to delivery of reliable, affordable wholesale power to Participant communities. Subsequent tax-exempt bonds allowed us to acquire our other generation and transmission assets. To say tax-exempt financing has played an important role in the growth and prosperity of our 49 Participant communities across Georgia is an understatement.

We will continue to monitor this issue closely. We may call on your voices as representatives of our Participant communities to help advocate for keeping this vital form of financing for America’s towns and cities.