20020801Amendment of Order.pdf

-/Y3 I
An IDACORP Company
PATRICK A.HARRINGTON
Attorney
ATTENTION COMMISSIONSECRETARY AND HEAD LEGAL SECRETARY:
Idaho Power Companyrequests that the Commission issue an
Order approving the attached application on or before August 8,2002 e o
August 1,2002
HAND DELIVERED c
Ms.Jean D.Jewell
Secretary
Idaho Public Utilities Commission
Statehouse
Boise,Idaho 83720
Re:In the Matter of the Application of Idaho power Company for an Amendment to the
Commission's Order No.28991 Regarding Short-Term Borrowings
CASE NO.IPC-E-02-1
Dear Ms.Jewell:
Enclosed herewith for filing with the Commission are an original and five (5)copies of the above-
referenced application.Pursuant to the Commission's Rule 145 and as indicated above,Idaho Power is
requestingthat the Commission issue its order authorizing the amendmentto Order No.28991 as described
in the application by August 8,2002.
A notice for publication regarding the application is enclosed for your signature.Idaho Power will
submit the $1,000 application filing fee to the Commission for this application prior to August 8,2002.
Please send ten (10)certified copies of the Order issued in this matter to the undersigned.
If you haveany questions regarding this application,please contact me at 388-2878.
Sincerely,
Patrick A.Harrington
c:Don Howell
Telephone[phone],Fax [phone]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )IDAHO POWER COMPANY FOR AN )CASE NO.IPC-E-02-1
AMENDMENT TO THE COMMISSION'S )
ORDER NO.28991 REGARDING SHORT-)APPLICATION FOR
TERM BORROWING )AMENDMENT OF
)ORDER
IDAHO POWER COMPANY (the "Applicant")hereby applies for an order of
the Idaho Public Utilities Commission (the "Commission")for an amendment to the
Commission's Order No.28991 in this Case,dated March 28,2002 (the "Order"),to
increase the authorized amount of short-term debt of Applicant authorized under the
Order from $350,000,000 to $400,000,000 aggregate principal amount at any one time
outstanding from September 1,2002 to October 15,2002 (the "Amendment").This
Application for Amendment is made under Idaho Code Section 61-624;Chapter 9,Title
61 of the Idaho Code;and Rules 141 through 150 of the Commission's Rules of
Procedure.
Background
Applicant is requesting the Amendment based upon its plans to issue a new series
of floating rate notes in the aggregate principal amount of $100,000,000 (the "Notes").
The Notes are scheduled to be issued on September 3,2002 and will have a term of not
more than twelve (12)months.Based on this term,the Notes would fall within Idaho
Power's $350,000,000 short-term borrowing authorization set forth in the Order.
However,due to the timing of the issuance of the Notes and the corresponding
redemption of other outstanding short-term notes of the Company as described below,the
issuance of the Notes is projected to temporarily raise Applicant's aggregate principal
amount of short-term borrowings outstanding on September 3,20002,to over
$350,000,000.The Amendment to the Order would address this situation by temporarily
increasing Applicant's authorized short-term borrowings from $350,000,000 to
$400,000,000 aggregate principal amount at any one time outstanding between
September 1,2002 and October 15,2002.
The issuance of the Notes is projected to exceed the $350,000,000 short-term
borrowing limitation set forth in the Order as a result of the timing of Applicant's
redemption of other outstanding short-term notes.More specifically,Applicant issued
$100,000,000 of its Floating Rate Notes,Series A,due September 1,2002,on September
12,2002 (the "Existing Notes").The Existing Notes have a term of less than 12 months
and fall within the short-term borrowing authorization set forth in the Order.Applicant
plans to make payment to redeem the Existing Notes on September 3,2002.Applicant
further plans to fund the redemption of the Existing Notes with the proceeds of the Notes,
which would also be issued on September 3,2002,just prior to the redemption of the
Existing Notes.
The difficulty with Applicant's aforementionedissuance and redemption schedule
concerns the brief period of time on September 3,2002 in which both the Existing Notes
and the Notes would be outstanding (i.e.the period after the issuance of the Notes on
September 3 and the subsequent redemption of the Existing Notes on the same day).This
period of time may be a mere matter of hours or even minutes,but nonetheless during
this time both the Existing Notes and the Notes would be outstanding.Idaho Power
projects that its short-term borrowing balance on September 3,2002 (excluding the
Existing Notes and the Notes)will be approximately $160,000,000.Adding the
$100,000,000 principal amount of the Existing Notes would bring the short-term balance
to $260,000,000,and adding the $100,000,000 principal amount of the Notes would
result in a momentary short-term borrowing balance (prior to the redemption of the
Existing Notes)of $360,000,000,exceeding the $350,000,000 short-term borrowing
limitation set forth in the Order.
Applicant believes that the Amendment requested herein to increase the short-
term borrowings authorized under the Order from $350,000,000 to $400,000,000
aggregate principal amount at any one time outstanding between September 1,2002 and
October 15,2002,will provide sufficient latitude to Applicant to accomplish the issuance
of the Notes and the redemption of the Existing Notes on September 3,2002,and provide
a buffer period after the issuance and redemption to assure Applicant's compliance with
the short-term borrowing limitations set forth in the Order.After October 15,2002,the
authorized aggregate principal amount of short-term borrowings of Applicant at any one
time outstanding under the Order would be reset to $350,000,000.
Notice of Application
Notice of this Application will be published in those newspapers in Applicant's
service territory listed in Rule 141(h)of the Commission's Rules of Practice within seven
(7)days of the date hereof.
Terms and Conditions of Order
All other terms and conditions of the Order except for the temporary increase in
the authorized aggregate principal amount of short-term borrowings at any one time
outstanding under the Order as described in this Application will remain in full force and
effect and will continue to be binding upon Applicant.
Request for Expeditious Action
Applicant respectfully requests that the Commission issue its order herein on or
before August 8,2002,due to the timing requirements for Applicant's proposed issuance
of the Notes on September 3,2002.
PRAYER
WHEREFORE,Applicant requests that the Idaho Public Utilities Commission
issue its order amending the Order to provide that the short-term borrowings authorized
for Applicant under the Order be increased from $350,000,000 to $400,000,000
aggregate principal amount at any one time outstanding from September 1,2002 to
October 15,2002,as set forth in this Application.
DATED at Boise,Idaho this day of August 2002.
IDAHO POWER COMPANY
/s/Darrel T.Anderson
Vice President,CFO and Treasurer
(CORPORATE SEAL)
ATTEST:
/s/Robert W.Stahman
Secretary
Idaho Power Company
1221 W.Idaho Street
Boise,ID 83707-0070
VERIFICATION
I,Darrel T.Anderson,declare that I am the Vice President,CFO and
Treasurer of Idaho Power Company,and am authorized to make this Verification.The
Application was prepared at my direction and was read by me.I know the contents of the
Application and they are true,correct and complete to the best of my knowledge and
belief.
WITNESS my hand and seal of Idaho Power Company this day of
August,2002-
/s/Darrel T.Anderson
SUBSCRIBED AND SWORN to me this day of August,2002.
(Notary Seal)
Notary Public for Idaho
Residing at Boise,Idaho
My Commission Expires: