Huntsville Utilities borrows $28M for upgrades

Huntsville Utilities has borrowed more than $28M for new substations, transmission lines and other projects.

The utility company will use the money to pay for projects over the next five years to upgrade its systems. Utility spokesman Bill Yell said the money will help install 21,000 smart meters for industrial and commercial customers. He said this will help to eliminate the need for meter readers.

It also will update or build new substations across the city.

Officials said around $4M of the money will pay off a 2002 bond issue with a higher interest rate. Yell said by doing this the company will save about $400,000.

Copyright 2011 WAFF. All rights reserved.