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HomeMy WebLinkAbout20030218_390.pdfDECISION 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