20030509_459.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:MAY 7, 2003
SUBJECT:ACIFICORP REQUESTED EXTENSION OF DEBT AUTHORITY;
CASE NO. PAC-03-
RECOMMEND:APPRO V AL
PacifiCorp requests authority to borrow not more than $800 Million in debt, in one or
more offerings as a shelf offering. The requested authority will extend the expiration date in
Case No. PAC-01-12 from November 1 2003 to November 1 2005. All other terms and
conditions in Order No. 28806 will not change.
The type of issue (i.e. public, private, domestic, foreign, secured or unsecured) and the
terms of issue including interest rate will be determined at the date of issue. PacifiCorp will
notify the Commission Staff of the terms as soon as practical before issuance. The type of issue
will be based on the all-in costs and benefits of the alternatives. PacifiCorp committed in Case
No. P AC-99-3 to a cost test where foreign transactions will not be utilized unless and until it
can assure the all-in cost of the foreign borrowing is no more than the all-in cost of similar
domestic borrowings. This condition is still effective. Proceeds from the debt issuances will be
utilized for general utility purposes including improvement or maintenance of service or
facilities, construction purposes, acquisition of utility property, discharge or refunding of existing
issuances ot to reimburse the Company s treasury.
DECISION MEMORANDUM MAY 7, 2003
STAFF DISCUSSION AND RECOMMENDATION
PacifiCorp requests the debt authority be continuous and remain effective through
November 1 , 2005 for the remaining $800 Million of the previous authority. The availability of
the shelf authority is important to take advantage of favorable rates and conditions to refinance
existing higher cost debt and maturing issuances. The probability of the full $800 million being
issued at one time is remote. I recommend the authority be granted. The reasonableness of the
interest rate and all-in cost will be evaluated as part of the review of issuance documents when
filed in this case and in future cases. The required fees have been paid.
COMMISSION DECISION
Should authority to borrow $800 Million in debt be approved through November 1
2005?
JmM CflJ1br
Terri Carlock
udmemos/TC/P AC/paceO36
DECISION MEMORANDUM MAY 7, 2003