Coffee-FlavoredSweat t1_j1z8jsc wrote on December 28, 2022 at 2:35 PM

Reply to comment by redcoat777 in Group opposed to Maine consumer-owned utility turns in signatures for a ballot question of its own by DrMcMeow

There’s no way they would be able to finance $9B on a 15-year loan. It would likely be 30 to 35 years and closer to a 5% rate.

I did say that it was napkin math, though, and I’m just a guy on Reddit. You seem to have come to roughly the same numbers, though.

The $60 per month is just debt service for owning our own power company. Then we have to pay for the power generation, and transmission costs on top of that.

redcoat777 t1_j206xtk wrote on December 28, 2022 at 6:32 PM

30 years at 5% increases the total interest to 8.4B and drops the payment to $48/mo. Pulling out the $20/mo from their profits gives an extra payment of $28/mo. Though of course with a capital project, trying to figure out how much it “hurts” to make payments has to consider inflation. If we count on 3% inflation (which is conservative) it makes the effective interest rate 2%, and a monthly inflation adjusted payment of $33, which is $13/mo after you pull their $20/mo profit margin out. that seems like a good deal to me honestly. But like you said we dont have a true picture of the cost, loan terms, or their profit.