20061127_1753.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:NOVEMBER 22, 2006
RE:IDAHO POWER COMPANY'S REQUEST TO ISSUE AND SELL UP TO
$300 MILLION SHELF AUTHORITY FOR FIRST MORTGAGE BONDS
AND DEBT SECURITIES - CASE NO. IPC-06-28.
On November 17, 2006, Idaho Power Company filed an Application requesting authority
to extend the time authorized to issue and sell from time to time (a) up to $300 000 000
aggregate principal amount of one or more series of First Mortgage Bonds, which may be
designated as secured medium-term notes, (b) up to $300 000 000 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 $300 000 000. The unissued portion of $240 000 000 Bonds/Debt Securities remains
for extension. The two-year extension will not change the remaining terms of the authority
granted in Order No. 29621.
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
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
DECISION MEMORANDUM - 1 -NOVEMBER 22, 2006
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.
STAFF RECOMMENDATION
Staff recommends approval of the requested two-year extension for the $300 million
shelf registration.
COMMISSION DECISION
Does the Commission approve the two-year extension for the $300 million shelf
registration?
TC\ipceO6.28SheIDOOM.DMl1.22.
Jwu ~f) cR
Terri Carlock
DECISION MEMORANDUM - 2 -NOVEMBER 22, 2006