Bonds or notes are issued by AMP-Ohio and supported by the member community's pledge to pay debt service from revenue collected by its electric fund. Because the amount financed for a specific project is not included when calculating the municipality's regular bond cap, this service can provide communities extra flexibility and capacity in financing nonelectric projects.

Because AMP-Ohio is in regular communication with bond counsel, investment bankers and bond buyers, communities also benefit through reduced costs and excellent rates. Again, because AMP-Ohio remains active in the bond markets, financings done through this program typically take considerably less time than similar bond or note sales done by individual communities.

Since September 1996, when this program started, AMP-Ohio has financed 72 projects totaling nearly $264 million on behalf of member communities.

Financing rates depend on existing market conditions at the time the bond is sold, the investor's perception of possible risk factors such as the potential impact of deregulation, current economic conditions in the community as well as the financial soundness of the electric fund, operating margins and debt coverage ratios.

For more information on AMP-Ohio financial programs, please call Robert Trippe, vice president of finance, CFO, at 614/337-6222 or send e-mail to btrippe@amp-ohio.org