This large pipe, installed in November 2019, is part of Denver Water’s new Northwater Treatment Plant project. Photo credit: Denver Water.
ROCKY MOUNTAIN WATER JULY 2020 | 29
They did bid, and the bond sale did go well. Very well.
On May 6, Denver Water issued two sets of tax-exempt bonds
that, combined, will bring the utility about $300 million in pro-ceeds,
minus costs associated with the issuance.
The money will help reimburse Denver Water for a portion of
the utility’s capital improvement program in 2019 and 2020 and
refinance existing bonds at lower interest rates, savings that will
be passed along to Denver Water customers by helping to mini-mize
future rate increases. The utility anticipates a $1.5 billion
capital improvement program over the next five years.
Denver Water’s five-year program includes building the
new, state-of-the-art Northwater Treatment Plant, replacing
a major water pipeline that dates to the 1930s, upgrading
water storage infrastructure in southeast Denver, expanding
Gross Reservoir Dam in Boulder County, and replacing old,
customer-owned lead service lines across the service area
through the Lead Reduction Program.
“The bond sale went tremendously well, with multiple com-petitive
bidders and historically low interest rates, allowing
us to pass on savings to our customers. This successful bond
issue is a tribute to the financial strength and stability of
Denver Water, due to the hard work our teams put into deliv-ering
a safe, reliable, and clean water supply to 1.5 million
people,” said Jim Lochhead, CEO/Manager of Denver Water.
“We also couldn’t have done this without our customers,
who built the strong, diverse, and flexible economy praised
by the credit agencies in their reports,” Lochhead said.
Both bond issues, Series2020A and Series2020B, received
triple-A ratings with a stable outlook from the three major
credit rating agencies, Fitch Ratings, S&P Global, and
Moody’s Investor Service.
Denver Water expects to see proceeds from the sale of the
Series2020A issue of about $155.4 million, to be repaid over
30 years at a 3.02% interest rate. This new bond issue will
help pay for Denver Water’s capital upgrades.
Proceeds from the issue of Series2020B are expected to be
about $147.7 million, repaid over 20 years at an interest rate
of 2.09%. This money will refinance bonds Denver Water