A Bear Stearns & Company led syndicate purchased the Financing Authority for Resource Efficiency of California's (FARECal) most recent $46,545,000 Certificate of Participation issue on May 13, 1997. The financing was the JPA's second issue since its inception in 1993. Three CMUA members, the City of Anaheim Electric, the City of Colton Electric and Trinity County Public Utility District, participated in the 30 year borrowing which had a combined true interest cost of 5.92%.

The AMBAC insured financing was unique because FARECal was able to obtain separate insurance quotes for each entity as well as separate underlying ratings from Moody's and Standard & Poor's for each entity. Colton Electric, a previously unrated utility, received an investment grade rating and Trinity County PUD benefited from a significant Moody's upgrade. Colton achieved its goal of 5% refunding savings and Trinity also achieved its goal of a 6% TIC. Anaheim Electric's $25,000,000 portion of the borrowing will be used to fund capital projects related to the City's Electric Distribution System and should benefit the Utility in its preparation for deregulation. FARECal's financial advisor, O'Brien Partners Inc., has already begun work on the next FARECal financing which they anticipate will focus on providing funding for electric distribution facilities statewide. For further information, please call Jerry Gold at 213/680-7768.