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National Cooperative Services Corporation
 

Our History

The National Cooperative Services Corporation (NCSC), a CFC affiliate owned and controlled by member systems, was created on January 26, 1981, to help electric cooperatives reduce the cost of new generation facilities through tax-advantaged financing vehicles (such as leverage and safe harbor leases) available at the time. Eleven members sat on the first board of NCSC directors in November 1981.

Over the years, NCSC has helped cooperatives finance infrastructure in transactions ranging from original power plant leases to loans for acquisitions. It has helped cooperatives expand their reach through loans for telecommunications, non-electric products and economic development.

At the end of fiscal year 1982, NCSC’s first full year of operations, it had 24 members and assets of $134,283.

By the end of fiscal year 2013, NCSC had 380 members and assets of $799.7 million, including outstanding loans to borrowers totaling $773.1 million.

NCSC Through the Years

1980s

  • NCSC’s first leverage lease in December 1981, involved a coal dragline for the 1,135-MW Thomas Hill Energy Center, owned and operated by Associated Electric Cooperative, a G&T based in Springfield, Mo.
  • NCSC assisted CFC members with 27 deals, including 16 safe harbor leases of $1.22 billion in assets and 11 leverage leases totaling $922.5 million.
  • In 1987, NCSC paved the way for the Rural Telephone Finance Cooperative (RTFC), another CFC affiliate, and private market lending by providing loans to rural telecoms until RTFC was in operation.

1990s

  • NCSC provided financing to PJM Interconnection, which supports the largest centrally dispatched electric grid in the world.
  • NCSC developed the associate loan program to provide financing to for-profit subsidiaries of CFC members for economic and business development.

2000 to present

  • In 2004, NCSC purchased Tennessee Valley Authority’s (TVA) loan portfolio of $58.3 million, which helped keep TVA loans in the cooperative family, reduced TVA’s annual interest expense by $275,000 and opened the door to future financing with the TVA community.
  • CFC has served as the lead arranger for several syndication deals including a $150 million syndicated secured line of credit for Gas South, LLC, a subsidiary of Cobb Electric Membership Corporation.
  • In 2012, NCSC issued a $10.4 million secured letter of credit and a $55 million secured bridge line of credit to Lea County Electric Cooperative in order to develop a 47-MW natural gas plant.

The NCSC Mission

NCSC’s mission is to provide specialized financing and related financial services to benefit electric cooperatives and their partners.

While NCSC was created to respond to specific opportunities, it became clear that it could also build value for cooperatives in other ways. NCSC has helped cooperatives finance infrastructure in transactions ranging from original power plant leases to loans for acquisitions. It has helped cooperatives expand their reach through loans for telecommunications, non-electric products and economic development services.

Since 1981, NCSC has demonstrated that it has the resources, flexibility and creativity to meet the needs of cooperatives and their partners for financing that cannot be obtained from other sources.