public power bond(redirected from Public Power Bonds)
Public Power Bond
A bond issued by a publicly-owned utility company. Because utility companies have very large capital expenditures (they must build expensive infrastructure to provide their services), they use public power bonds to finance many of their projects. Because they are publicly-owned, interest is usually tax exempt at the federal level.
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public power bond
Debt that is issued by a public power agency such as the Municipal Electric Authority of Georgia. Interest on such a bond is usually tax-exempt federally. Interest and principal payments are derived from revenues generated by the sale of electricity.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.