Sens. Webb, Warner Announce $29 Million in Bonds for Southside Solar Project

October 28, 2009 -- WASHINGTON, D.C. – U.S. Senators Jim Webb and Mark R. Warner announced today that the U.S. Department of Treasury will award $29 million in bonds to American Municipal Power, Inc., for financing of a solar energy project in the City of Danville and Pittsylvania County. When completed, this solar project could provide up to six-megawatts of daily power for the regional transmission grid.

The Ohio-based power company is one of 805 companies across the U.S. that will share in $2.2 billion in Clean Renewable Energy Bonds (CREBs). These bonds, funded by the Energy Improvement and Extension Act of 2008 and the American Recovery and Reinvestment Act of 2009, function as tax credit bonds, allowing investors to receive federal tax credits in lieu of the payment of 70 percent of the interest on the bonds.

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“These bonds will allow American Municipal Power and other energy developers to gain access to lower-cost credit,” Senator Warner said. “This program will help us ‘jumpstart’ the shift to clean, renewable energy production – technology that will benefit our economy and the environment.”

“The dedication of $29 million in bonds to American Municipal Power is welcome news to the community of Danville,” said Senator Webb. “This investment will help to stimulate the Danville economy during these tough economic times, and aide in the development of sustainable industry based on renewable energy technologies.”

The bonds were awarded to government agencies, public power providers, and cooperative electric companies involved in clean renewable energy development and production. Applications for the bonds were due on August 4, 2009.

Source: Senator Mark R. Warner