28991.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AUTHORITY TO INCUR UP TO $350,000,000 ADDITIONAL SHORT-TERM DEBT.
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CASE NO. IPC-E-02-1

ORDER NO. 28991

On February 28, 2002, 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 $350,000,000 aggregate principal amount of short-term debt at any one time outstanding. The proposed authorization would replace the short-term debt authority that expires March 31, 2002. Idaho Power is an electric utility headquartered in Boise, Idaho, that provides retail electric service to approximately 370,000 customers in southern Idaho, eastern Oregon and parts of northern Nevada. The Commission, having fully considered the Application, attached exhibits, its files 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 and eastern Oregon. Its principal executive offices are located in Boise, Idaho.
Idaho Power proposes, subject to the approval of the Commission, 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 and an annual fee 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 Idaho Power during the period from April 1, 2002 to and including March 31, 2003. The proposed borrowings will have varying maturities, but in no event will any borrowing have a final maturity beyond March 31, 2004.
Idaho Power states the purpose for which the proposed short-term borrowings will be made and promissory notes, commercial paper or other evidence of indebtedness issued, is to obtain temporary, interim capital (including renewal of short-term notes or other evidence of indebtedness issued or outstanding prior to April 1, 2002), to finance Idaho Power’s ongoing construction program. The Company’s construction program may include but is not limited to new plant investment, as well as the upgrade of existing generation, distribution, transmission and general plant. The proposed short-term borrowings may also be for general corporate purposes that include but are 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 method of issuance is proper.
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 from April 1, 2002 to and including March 31, 2003 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 $350,000,000 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 March 31, 2004. 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 $350,000,000 aggregate principal amount at any one time outstanding as herein set forth. 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 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-02-1 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-02-1. 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 March 2002.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

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ORDER NO. 28991 1

Office of the Secretary
Service Date
March 28, 2002