20030313Order No 29204.pdf

Office of the Secretary
Service Date
March 13 , 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR AN
ORDER AUTHORIZING UP TO $250,000,000
AGGREGATE PRINCIPAL AMOUNT AT
ANY ONE TIME OUTSTANDING OF
SHORT -TERM BORROWINGS
ORDER NO. 29204
CASE NO. IPC-03-
On February 25, 2003, Idaho Power Company (Idaho Power) filed an Application
pursuant to Chapter 9, Title 61 of the Idaho Code and Rules 141 through 150 of the Commission
Rules of Procedure, IDAP A 31.01.01.141-150, requesting an Order authorizing Idaho Power to incur
up to $250 000 000 aggregate principal amount of short-term borrowings at anyone time
outstanding. Idaho Power is an electrical utility headquartered in Boise, Idaho, providing retail
electric service in southern Idaho and eastern Oregon. The Commission hereby adopts its Findings
of Fact, Conclusions of Law and Order approving the Application.
FINDINGS OF FACT
Idaho Power was incorporated on May 6, 1915 and migrated its state of incorporation to
the state ofIdaho on June 30, 1989 and is duly qualified to do business in the state ofIdaho. Idaho
Power s principal office is located in Boise, Idaho.
Idaho Power proposes, subject to the approval of this 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 anyone
time outstanding will be available to Idaho Power to draw upon for a fee to be determined either by
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.
ORDER NO. 29204
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
Idaho Power may issue the proposed borrowings during the period from April 1, 2003 to
and including March 31 , 2004. The proposed borrowings will have varying maturities, but in no
event will any borrowing have a final maturity beyond March 31 , 2005.
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 , 2003), 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, and 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 ofthe 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 ofIdaho and are compatible with the public interest. However, this
general approval ofthe general purposes to which the proceeds will be put is neither a finding offact
nor a conclusion of law that any particular construction program of the Company which may be
benefited by the approval ofthis Application has been considered or approved by this Order, and this
Order shall not be construed to that effect.
ORDER NO. 29204
The issuance ofthis Order authorizing the proposed financing does not constitute agency
determination/approval ofthe 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.
ORDER
IT IS THEREFORE ORDERED that Idaho Power Company be, and the same is hereby
authorized, during the period from April 1 , 2003 to and including March 31 , 2004 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 $250 000 000 aggregate principal amount of short-term promissory
notes or other evidence of indebtedness to be outstanding at anyone time, with a final maturity of no
later than March 31 , 2005. 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 $250 000 000 aggregate
principal amount at anyone 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 shall file with the Commission pursuant
to the Commission s Rule 143 , as soon as available, final verified copies of any agreement entered
into in connection with the execution of this authority. IDAPA 31.01.01.143.
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 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 payor guarantee in any manner whatsoever any security
authorized, issued, assumed or guaranteed under the provisions of said Title 61 , Chapter 9 Idaho
Code.
ORDER NO. 29204
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date ofthis Order. Within seven (7) days
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~ 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 1'- tk
day of March 2003.
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MARSHA H. SMITH, COMMISSIONER
ATTEST:
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ORDER NO. 29204