Series 2026 Bond Transaction Delivers Significant Long-Term Cost Savings

DC Water has closed on a refinancing deal for its Series 2026 bonds that will save customers millions of dollars and keep rates affordable across the District. The refinancing transaction, which closed this month, delivers approximately $54 million in budget savings over the next twenty years, directly benefiting DC ratepayers through reduced costs.

The deal refinances existing bonds tied to capital infrastructure projects, backed by DC Water’s high bond ratings to secure a lower interest rate that resulted in about $2.9 million in annual debt service savings.

These savings underscore the Authority's ongoing commitment to financial health and sustainability, ensuring that essential water and sewer services remain affordable for more than two million residents and businesses in the region.

Earlier this year, all three major agencies - S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings - reaffirmed DC Water’s top-tier ratings, recognizing its strong financial management, independent rate-setting authority, and prudent capital planning. These high ratings allowed DC Water to achieve favorable terms on the refinancing, providing access to low-cost capital, which translates into lower rate increases for customers and long-term affordability.

These bonds support DC Water’s $9.6 billion Capital Improvement Program, funding key upgrades such as the Potomac River Tunnel for the Clean Rivers Project, the Lead Free DC initiative to replace lead service lines across the District, rehabilitation of the 54-mile Potomac Interceptor sewer system, water main replacements, and equipment upgrades at Blue Plains to ensure reliable service for customers and stakeholders across the region.

DC Water remains committed to leveraging financial tools and maintaining top bond ratings to maximize cost savings and protect affordability for all ratepayers. For more information about DC Water’s innovative financing, budgeting, and financial reports go to dcwater.com/finance and dcwaterbonds.com.