20030218_390.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:FEBRUARY 14, 2003
RE:PAC-03-1; PACIFICORP POLLUTION CONTROL REVENUE
BOND AMENDMENTS.
PacifiCorp requests authority to amend the terms authorized in prior orders for Pollution
Control Revenue Bonds (PCRB). PCRBs are used to finance or refinance the cost of pollution
control, solid waste disposal and sewage facilities at certain PacifiCorp electric generating plants.
The amendments are intended to allow credit enhancement opportunities to lower the overall
cost of financing, i.e. security from First Mortgage Bonds. Amendments will be made to the
Trust Indenture, Loan Agreements and related documents so all authorities are similar to the
1994 issuance. In Idaho, the 1994 issuance was approved in Case No. PAC-94-, Order
No. 25443 dated March 22, 1994 (copy provided with Application).
ST AFF DISCUSSION AND RECOMMENDATION
Staff recommends approval of the amendments and consistency between the issuance
authorities. This consistent treatment will provide PacifiCorp the opportunity to obtain the
lowest cost for pollution control financings and refinancings. Staff recommends that PacifiCorp
retain documentation showing that the overall cost with the credit enhancement facilities is lower
than the overall cost of financing without the credit enhancement facilities.
DECISION MEMORANDUM - 1 -FEBRUARY 2003
COMMISSION DECISION
Should the requested amendment to make changes in terms and related documents for
Pollution Control Revenue Bonds, thus granting authority to provide credit enhancements, be
approved?
JV7J71 ,
Terri Carlock
pacO3.1 pollution control bonds.decmem
DECISION MEMORANDUM - 2 -FEBRUARY 14 2003