Illinois Municipal Electric Agency (IMEA) member municipalities—including Fairfield, Flora, and Carmi—will share in $33.6 million in savings on power bills over the next ten years, following a successful bond refinancing completed this summer by the agency. IMEA, a nonprofit joint-action supplier, provides electricity and related services to 32 municipally owned utilities across Illinois.
The refinancing will generate $3.4 million in annual savings for member municipalities, with the portion each receives based on their energy usage and demand.
IMEA President and CEO Kevin Gaden credited the achievement to IMEA staff, the underwriting team led by Bank of America, Ramirez Securities, and PNC Bank, along with bond counsel Chapman and Cutler and financial advisors Public Finance Management.
“The bond market has been very volatile lately, but IMEA was able to successfully secure a lower interest rate to pass through a substantial savings to our 32 member municipalities,” Gaden said.
The deal closed out the 2025A IMEA Bond refinancing, which began after board approval in February. It refinanced all of IMEA’s 2015A Bonds and portions of its 2009C and 2010A Build America Bonds.
Strong credit ratings supported the effort. Fitch Ratings recently affirmed IMEA at “AA- Stable Outlook”, while Moody’s assigned an “A1 Stable Outlook.”
IMEA Board Chairman Dan Cook said the refinancing reduces debt service payments and sets up the agency for long-term financial strength.
“When the term is complete in February 2035, all IMEA power supply debt will be paid off,” Cook explained. “With ownership of $1.2 billion in assets at that point, our members will be in a very enviable position as the agency considers future resource planning.”
Comments