Analyses of GARVEE Bonding Capacity 2008

III. Need for Sensitivity Analyses

There are multiple factors that will influence the State’s future capacity to issue GARVEE bonds.  These factors include the final maturity, interest rates and the available revenues for the additional bonds test.  As a result, no single bonding capacity analysis is sufficient for purposes of guiding the Commission’s evaluation of the potential for future use of GARVEE bonds.  Therefore, to facilitate an informed consideration of future applications with structures and terms not yet known to the Commission, we have performed a series of “sensitivity analyses” under alternative scenarios.  The factors that have been varied in these different analyses are identified in the following table.