Redevelopment commission renews $7 million line of credit for Anderson City electric utility

The Anderson Redevelopment Commission voted June 9, 2026, to renew a $7 million line of credit to the Anderson City electric utility for one year, extending availability from July 8, 2026, through July 7, 2027.

A staff member told commissioners the line of credit was entered on July 8, 2025, and that $2,376,963.32 in principal has been drawn. The same staff member reported accrued interest of $42,894.11 and said the loan’s terms require interest to be paid at maturity and prior to any renewal. "We need the extension to continue to have the liquidity," the staff member said, explaining the request.

Staff said the renewal is intended to preserve operations of Municipal Light & Power until the Indiana Utility Regulatory Commission (IURC) and the Office of Utility Consumer Counselor (OUCC) complete a pending rate case in Indianapolis. The staff estimate projected accrued interest in the neighborhood of $50,000 by July, when the interest payment will be posted back to the ARC fund.

An unnamed commissioner moved to renew the $7 million loan made by the ARC to the Anderson City electric utility, specifying the one-year renewal dates and that "all other terms to the loan shall remain the same including the 3% rate of interest." Another commissioner seconded the motion. Commissioners clarified that the $2.376 million already drawn would remain outstanding against the $7 million line, leaving additional borrowing capacity under the line.

The commission approved the renewal by voice vote; the meeting transcript does not record a roll-call tally or individual votes. Commissioners and staff noted that the original resolution authorizing the loan permits annual renewals and that they expect this to be the only renewal before moving into repayment once rates are established.

The extension keeps the line available while staff and the utility await the regulator’s decision; once the IURC rate case concludes, the commission indicated it will evaluate amortization and repayment options. The meeting adjourned after the vote.