20030721Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:JULY 21, 2003
RE:IDAHO POWER COMPANY'S REQUEST TO REFUND $49,800,000
HUMBOLDT COUNTY, NEVADA POLLUTION CONTROL REVENUE
BONDS - CASE NO. IPC-03-
On July 2003 , Idaho Power Company (Idaho Power) filed an Application requesting
authority to enter into financing transactions to refund $49 800 000 aggregate principal amount
of Humboldt County, Nevada Pollution Control Revenue Bonds. Idaho Power proposes to
refund to secure a lower average interest and/or to extend the average maturity for the refunding
bonds.
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. The interest rate may be fixed or
variable and may be convertible. Idaho Power expects the refunding bonds to be issued on or
before December 2003. Idaho Power may evaluate interest rate swaps and/or interest rate
hedging arrangements to minimize the interest costs. Idaho Power will also evaluate the need
and interest expense reduction if guarantees, pledges or other security agreements are entered.
Idaho Power requests an Order authorizing Idaho Power Company to 1) enter into
contracts of purchase, loan agreements, letter of credit agreements, security agreements and such
other agreements or arrangements as reasonably necessary to refund the $49 800 000 aggregate
principal amount of Humboldt County, Nevada Pollution Control Revenue Bonds.
Fees have been paid.
DECISION MEMORANDUM - 1 -JULY 21 , 2003
STAFF RECOMMENDATION
Staff recommends approval to refund the $49 800 000 aggregate principal amount of
Humboldt County, Nevada Pollution Control Revenue Bonds.
COMMISSION DECISION
Does the Commission approve the request to refund the $49 800 000 aggregate principal
amount of Humboldt County, Nevada Pollution Control Revenue Bonds.
Does the Commission approve the agreement that Idaho Power will file by letter seven
days or as soon as possible prior to issuance the terms of issuance and file all final documents.
J-Vlm 0 eYe
Terri Carlock
TC\ipce03.9HumboldtPCB.DM7.21.
DECISION MEMORANDUM - 2 -JULY 21 2003