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HomeMy WebLinkAbout20080107_2139.pdfDECISION MEMORANDUM TO:COMMISSIONER REDFORD COMMISSIONER SMITH COMMISSIONER KEMPTON COMMISSION SECRETARY LEG AL WORKING FILE FROM:TERRI CARLOCK DATE:JANUARY 3, 2008 RE:IDAHO POWER COMPANY'S REQUEST TO ISSUE AND SELL UP TO $350 MILLION SHELF AUTHORITY FOR FIRST MORTGAGE BONDS AND DEBT SECURITIES - CASE NO. IPC-07-19. On December 13 2007, Idaho Power Company filed an Application requesting authority to issue and sell from time to time (a) up to $350 000 000 aggregate principal amount of one or more series of First Mortgage Bonds, which may be designated as secured medium-term notes (b) up to $350 000 000 aggregate principal amount of one or more series of unsecured debt securities. The total outstanding combined principal amount of the Bonds and the principal amount of the Debt Securities to be issued and sold shall not exceed $350 000 000. A shelf registration allows a company to take advantage of attractive market conditions efficiently and rapidly. This shelf registration is requested for a two-year period. It is the same format as that completely issued as authorized from Case Nos. IPC-04-22 and IPC-06- Order Nos. 29621 and 30191. The Bonds will be issued pursuant to one or more supplemental indentures to the Mortgage and will be secured equally with the other First Mortgage Bonds of Idaho Power. Interest rate hedging arrangements with respect to the Bonds, may be entered by Idaho Power including treasury interest rate locks, treasury interest rate caps and/or treasury interest rate collars. The Bonds and/or Debt Securities may be sold by public sale or private placement directly by Idaho Power or through agents designated from time to time or through underwriters or dealers. The type and terms of issuance will be determined at the time of issuance. Any DECISION MEMORANDUM JANUARY 3 , 2008 required Prospectuses will be filed prior to issuance. If any agents or any underwriters are involved in the sale of the Bonds and/or Debt Securities, the names of such agents or underwriters, the initial price to the public (if applicable), any applicable commissions or discounts, and the net proceeds to the Applicant will be filed by the Applicant with the Commission. If the Bonds are designated as medium-term notes and sold to an agent or agents as principal, the names of the agents, the price paid by the agents, any applicable commission or discount paid by the Applicant to the agents and the net proceeds to the Applicant will be filed with the Commission. Idaho Power will file by letter seven days or as soon as possible prior to issuance the terms of issuance. All final documents will also be filed. Net proceeds from the sale of the Bonds and/or Debt Securities will be used for the acquisition of property; the construction, completion, extension or improvement of its facilities; the improvement or maintenance of its service; the discharge or lawful refunding of its obligations; and for general corporate purposes. To the extent that the proceeds from the sale of the Bonds or Debt Securities are not immediately so used, they will be temporarily invested in short-term discounted or interest-bearing obligations. ST AFF RECOMMENDATION Staff recommends approval of the requested two-year authority for the $350 million shelf registration. Idaho Power will file notice of issuances with the terms. All final documents will also be filed. The required securities fees have been submitted. COMMISSION DECISION Does the Commission approve the two-year authority for the $350 million shelf registration? joo Terri Carlock TC\ipce07. I 9Shelf350M.DM I 3. DECISION MEMORANDUM JANUARY 3 , 2008