28651.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AUTHORITY TO INCUR UP TO $300,000,000 ADDITIONAL SHORT-TERM DEBT.
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CASE NO. IPC-E-01-5

ORDER NO. 28651

On February 13, 2001, Idaho Power Company (Idaho Power) applied for an Order from the Idaho Public Utilities Commission (Commission) pursuant to Chapter 9, Title 61 of the Idaho Code and Rules 141 through 150 of the Commission’s Rules of Procedure, authorizing Idaho Power to incur up to an additional $300,000,000 aggregate principal amount at any one time of short-term debt. Idaho Power is an electrical utility headquartered in Boise, Idaho, that provides retail electrical service to approximately 360,000 customers in southern Idaho, eastern Oregon and parts of northern Nevada. According to Idaho Power’s Application, the requested $300,000,000 debt would be in addition to the $200,000,000 aggregate amount authorized in Order No. 26683 (Case No. IPC-E-96-21), thereby providing a total short-term debt authority of not more than $500,000,000. Pursuant to Rule 145 of the Commission’s Rules of Procedure, Idaho Power requests that the Commission issue its Order approving its Application by February 23, 2001.
The Commission, having fully considered the Application, attached exhibits, its files and records relating to this Application and the applicable laws and rules, grants the Application.
FINDINGS OF FACT
Idaho Power is an electric public utility incorporated under the laws of the State of Idaho that is engaged principally in the generation, purchase, transmission, distribution, and sale of electric energy in southern Idaho, eastern Oregon and northern Nevada. Its principal executive offices are located in Boise, Idaho.
According to Idaho Power’s Application, the additional debt will consist of loans issued by financial and other institutions in the form of unsecured notes, unsecured promissory notes, commercial paper and/or other indebtedness. The terms and interest rate for each issue will be determined at the time of issuance. The debt issuance(s) may be at a fixed or variable rate of interest based on Idaho Power’s first mortgage bond credit rating.
Idaho Power proposes to secure commitments for unsecured Lines of Credit for up to one year with several financial and other institutions. Each Line of Credit commitment will provide that up to a specific amount at any one time outstanding will be available to Idaho Power to draw upon for a fee to be determined either by a percentage of the credit line available, credit line utilization, compensating balance or combination thereof. In the case of a syndicated facility, Idaho Power will pay an arrangement fee estimated at $150,000 and an annual fee estimated at $30,000 to the agent as well as a facility fee based on a percentage of each bank’s commitment.
Idaho Power may also make arrangements for uncommitted credit facilities under which unsecured Lines of Credit would be offered to Idaho Power on an “as available” basis and at negotiated interest rates. Such committed and uncommitted borrowings will be evidenced by unsecured promissory notes or other evidence of indebtedness.
In addition, unsecured promissory notes will be issued and sold by Idaho Power directly or through one or more commercial paper dealers or agents. Each note issued as commercial paper will be either discounted at the rate prevailing at the time of issuance for commercial paper of comparable quality and maturity or will be interest bearing to be paid at maturity. Each such note will have a fixed maturity and contain no provision for automatic “roll over.”
The proposed borrowings may be issued by the Idaho Power through February 14, 2002. The proposed borrowings will have varying maturities, but in no event will any borrowing have a final maturity beyond February 14, 2003.
Idaho Power states the primary purpose for which the proposed short-term borrowings will be made and promissory notes, commercial paper or other evidence of indebtedness issued, is to provide short-term financing of increased power supply costs. The short-term funds may also be used to finance Idaho Power’s ongoing construction program including, but not limited to, new plant investment, as well as the upgrade of existing generation, distribution, transmission and general plant. Additionally, the proceeds may be used for general corporate purposes including, but not limited to, the possible purchase of electric utility assets and service territory, the possible repurchase of common shares of Idaho Power, the retirement of maturing debt and the possible repurchase or defeasance of certain debt or preferred stock presently outstanding.
CONCLUSIONS OF LAW
Idaho Power is an electrical corporation within the definition of Idaho Code § 61-119 and is a public utility within the definition of Idaho Code § 61-129.
The Idaho Public Utilities Commission has jurisdiction over this matter pursuant to the provisions of Idaho Code § 61-901 et seq., and the Application reasonably conforms to Rules 141 through 150 of the Commission’s Rules of Procedures, IDAPA 31.01.01.141-150.
The general purposes to which the proceeds will be put are lawful purposes under the Public Utility Law of the state of Idaho and are compatible with the public interest. However, this general approval of the general purposes to which the proceeds will be put is neither a finding of fact nor a conclusion of law that any particular construction program of the Company which may be benefited by the approval of this Application has been considered or approved by this Order, and this Order shall not be construed to that effect.
The issuance of an Order authorizing the proposed financing does not constitute agency determination/approval of the type of financing or the related costs for ratemaking purposes, which determination the Commission expressly reserves until the appropriate proceeding.
All fees have been paid by Idaho Power in accordance with Idaho Code § 61-905.
O R D E R
IT IS THEREFORE ORDERED that Idaho Power Company be, and the same is hereby authorized through February 14, 2002 to make short-term borrowings and to issue unsecured notes (including renewal notes), for the purposes herein set forth, in an amount not to exceed $300,000,000 aggregate principal amount of short-term promissory notes or other evidence of indebtedness to be outstanding at any one time, with a final maturity of no later than February 14, 2003. Idaho Power is further authorized to the extent permissible under applicable governmental statutes and regulations to substitute commercial paper borrowings for the Lines of Credit, or other borrowing arrangements, up to the limit of $300,000,000 aggregate principal amount at any one time outstanding as herein set forth. The short-term borrowing authorization granted hereunder is in addition to Idaho Power’s existing authorization to issue up to $200,000,000 aggregate principal amount of short-term borrowings in Case No. IPC-E-96-21, Order No. 26683, which will provide a total authorization of $500,000,000 aggregate principal amount outstanding for the Applicant’s short-term borrowings. No additional authorization is required to carry out this transaction and no Supplemental Order will be issued.
IT IS FURTHER ORDERED that Idaho Power include the additional debt authorized by this Order with its periodic debt reports for submission to and review by the Commission.
IT IS FURTHER ORDERED that Idaho Power file, as soon as available, the final exhibits and debt agreements as set forth in its Application.
IT IS FURTHER ORDERED that the foregoing authorization is without prejudice to the regulatory authority of this Commission with respect to rates, utility capital structure, service, accounts, evaluation, estimates for determination of cost or any other matter which may come before this Commission pursuant to its jurisdiction and authority as provided by law.
IT IS FURTHER ORDERED that nothing in this Order and no provisions of Title 61, Chapter 9, Idaho Code, or any act or deed done or performed in connection therewith shall be construed to obligate the state of Idaho to pay or guarantee in any manner whatsoever any security authorized, issued, assumed or guaranteed under the provisions of said Title 61, Chapter 9, Idaho Code.
IT IS FURTHER ORDERED that issuance of this Order does not constitute acceptance of the Idaho Power’s exhibits or other material accompanying the Application for any purpose other than the issuance of this Order.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally decided by this Order) or in interlocutory Orders previously issued in this Case No. IPC-E-01-5 may petition for reconsideration within twenty-one (21) days of the service date of this Order with regard to any matter decided in this Order or in interlocutory Orders previously issued in this Case No. IPC-E-01-5. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61626.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this
day of February 2001.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

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ORDER NO. 28651 5

Office of the Secretary
Service Date
February 26, 2001