We got some news regarding the Reedy Creek Improvement District and what they plan on doing to help ease concern. The Orlando Business Journal has all the details we need to understand what’s going on.
Walt Disney World’s Reedy Creek Improvement District on Oct. 3 approved a plan to ease concerns from one of its top power providers regarding a signed law by Florida Gov. Ron DeSantis that will lead to the district’s possible future dissolution.
Duke Energy is one of Disney’s main providers of power that keep the parks, hotels, and other experiences running. Duke Energy is also a very common provider in and around the Orlando area.
The district, which is the overseeing governing entity of the land including Walt Disney World (NYSE: DIS), approved the plan to enter a reimbursement agreement with Truist Bank for a $3 million letter of credit in favor of Duke Energy Florida LLC.
The reasoning for this line of credit is to ensure that Reedy Creek will be able to pay its May 2023 bill should it be dissolved on June 1, 2023. In this article, they also mention Duke Energy’s perspective on this.
“From Duke’s perspective, they want to make sure there’s a guarantee they get paid for May’s charges in June if we are not here — it’s a safety net [for Duke],” John Classe, district administrator of Reedy Creek told OBJ. “It makes smart sense for Duke to make sure they are covered from a business perspective.”
Looks like Disney and its partners are taking the necessary steps to ensure that everything is taken care of if Reedy Creek were to dissolve. In this article, they also mention Disney’s use of solar power and how much of it they use on property; I thought this part was interesting.
Most of Reedy Creek’s electrical power — roughly 90% of the output — comes from utility providers like Duke Energy and others. The remaining 10% comes from solar power. That power then is distributed to the district’s customers including the Walt Disney World properties, third-party hotel and retailers and residents in the cities of Bay Lake and Lake Buena Vista.
With Disney taking these steps, do you think that the Reedy Creek Improvement District will be dissolved by next year? What are your thoughts on this? Let us know in the comments.