SWIFT UPDATE. On Thursday, TWDB adopted a resolution to reduce interest rate subsidies effective for the 2021 round of SWIFT funding and indefinitely after. While the board adopted subsidies for the current round of funding consistent with the previous cycle, Chairman Lake expressed concern about the long-term health of the SWIFT Program. Chairman Lake said that as the fiduciary of the SWIFT program, TWDB must respond to uncertain market conditions to optimize long-term SWIFT capacity for current and future stakeholders. He reported that TWDB has issued 24% of targeted capital expenditures in 10% of the anticipated time frame, which means that the program has issued more debt in a shorter amount of time than the SWIFT fund was designed to accommodate.
outlines proposed subsidies for the next SWIFT funding cycle, including less favorable interest rate reductions but no changes to the Deferred Loan and Board Participation Program. The proposed subsidies will not be finalized until December 2020.