Nov. 18 election set on bond issue sought by TCID

Thursday, Oct. 16, 1997 | 9:40 a.m.

TCID leased the power system to the Reno-based utility in 1968, and that lease expires next June. The two sides have been unable to agree on new lease terms.

The election resolution caps the amount of money the district can raise in bonds at $30 million - well above a $20 million figure that had been mentioned earlier.

TCID Project Manager Lyman McConnell said actual costs depend on future negotiations between TCID and Sierra Pacific over the value of the utility operations and what's needed for start-up capital.

A feasibility study by TCID shows the power system is worth about $21 million with depreciation factored in. On the revenue side, the system earns $19 million a year from about 9,600 customers.

McConnell said the same analysis showed TCID might be able to reduce power rates in two or three years while covering bond payments and operating costs of the system.

He added a key selling point for up to 4,000 water right owners eligible to vote is that the power system would be locally controlled.