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HomeMy WebLinkAbout20050509_1194.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN COMMISSION SECRETARY LEGAL WORKING FILE FROM:TERRI CARLOCK DATE:MAY 6, 2005 RE:P ACIFICORP'S AUTHORITY REQUEST TO ISSUE UP TO 50 000,000 COMMON SHARES; CASE NO. P AC-05- On April 11 , 2005, PacifiCorp filed an Application requesting authority to issue up to 000 000 shares of Common Stock to its parent, PacifiCorp Holdings, Inc. Order No. 29144 issued on October 30, 2002 in Case No. P AC-02-, granted authority for PacifiCorp to issue up to 50 000 000 shares of Common Stock. To date 14 851,485 shares have been issued. This request (P AC-05-4) would incorporate the remaining shares currently authorized under Order No. 29144 with this requested authority, resulting in total authority to issue up to 50 000 000 shares of Common Stock. Other terms and conditions of Order No. 29144 would remain effective for this increased authority. The purpose of the requested authority is to allow PacifiCorp to maintain or improve access to capital at reasonable terms; maintain proper capitalization ratios; acquire or construct new plant along with the improvement or maintenance of existing generation, distribution transmission and general plant to provide or improve utility services; and for other corporate purposes. STAFF RECOMMENDATION Staff recommends approval of the requested authority to issue up to 50 000 000 shares of Common Stock. The current capital structure consists of 54.1 % debt, 0.6% preferred and 45.3% common equity. The proforma capital structure if both this equity authority and the debt authority (PAC-05-5) are approved is 56.1 % debt, 0.5% preferred and 43.4% common equity. DECISION MEMORANDUM - 1 -MAY 6, 2005 COMMISSION DECISION Should the requested authority to issue up to 50 000 000 shares of Common Stock to its parent, PacifiCorp Holdings, Inc. be approved? TC\pace054common. DM. 5. DECISION MEMORANDUM Jc5V ~L T em Carlock - 2- eLL llc MAY 6, 2005