LUB OKs electric revenue bond proposal, transformer purchase

By Charlotte Underwood

LAFOLLETTE, TN (WLAF)- The LaFollette Utility Board met on Monday evening, approving an engagement letter for financing, both to refinance $5 million in current debt that was for capital expenditure projects and for new finances, to be used for three large transformers. The transformers will be installed, one at the Royal Blue Substation, one at the Sweet Gum Flats substation and one for the “future Deerfield substation,” according to LUB General Manager Regina Kennedy.

“Some of the financing is also for upgrading some lines out towards the Deerfield area just to sustain the load in that area until a substation can be built,” Kennedy said.

Keener Billups with Wiley Bros/Aintree Capital, which is a municipal bond firm company, addressed LUB members at Monday’s workshop and meeting regarding this proposal for electric revenue bonds.

Kennedy said it might be June before the funding came through, and that the utility hoped to “try to get some of the upgrades done before winter hits or by next year.”

Also approved on Monday evening was the “pass through” purchase of transformers for the Tennessee College of Applied Technology Jacksboro campus.

“TCAT needs these large transformers soon, and Gary Williams our director of engineering has been working with border states and TCAT’s contractor and LUB is ordering the transformers for an approximate amount of $219,000 and TCAT or their contractor will reimburse LUB 100-percent,” Kennedy said.

It is a “net zero” cost to LUB and is just to “help TCAT get these transformers quickly.”

The next LaFollette Utility Workshop will be Mon., April 28, at 6 pm, with the meeting to follow immediately after. (WLAF NEWS PUBLISHED-04/01/2025-6AM)