20040331Final Order No 29461.pdf

Office of the Secretary
Service Date
March 31 , 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATIONrOF
IDAHO POWER COMPANY FOR AN ORDER
AUTHORIZING UP TO $250,000,000
AGGREGATE PRINCIPAL AMOUNT AT ANY
ONE TIME OUTSTANDING OF SHORT-TERM )BORRO~NGS.
CASE NO. IPC-04-
ORDER NO. 29461
On February 26, 2004, 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, IDAPA 31.01.01.141-150, requesting authority to incur up to $250 000 000
aggregate principal amount at anyone time of short-term debt. Idaho Power is an electric 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
The securities will consist ofloans issued as public or private placements in the form of
unsecured notes, unsecured promissory notes, commercial paper 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 interest rate based on LIB OR, the applicable prime rate, or other established
rate and may be based on Idaho Power s first mortgage bond credit rating. The length of the issuance
series may also vary with the borrowing(s) issued during the one-year period from April 1 , 2004
through March 31 2005. The varying maturities will not be longer than one year with the final
maturity not beyond March 31 , 2006. Each note will have a fixed maturity with no provision for
automatic roll over.
Fees will be charged by a syndicated facility for credit line arrangement estimated at
$250 000, an annual fee estimated at $30 000, and a facility fee as a percentage of each bank'
commitment. Commercial paper dealers or agents will charge a commission not to exceed 1/8 of
percent of the principal amount of each note.
The funds will be obtained for temporary, interim capital requirements for the following
purposes: renewal of short-term notes of indebtedness; power supply costs; construction of new
ORDER NO. 29461
plant along with the upgrade of existing generation, distribution, transmission and general plant;
retirement of maturing debt; refinancing of certain debt or preferred stock; or other corporate
purposes.
CONCLUSIONS OF LAW
Idaho Power is an electric corporation within the definition of Idaho Code 9 61-119 and
is a public utility within the definition of Idaho Code 9 61-129.
The Idaho Public Utilities Commission has jurisdiction over this matter pursuant to the
provisions of Idaho Code 9 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 ofIdaho 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 ofthis Application has been considered or approved by this Order, and this
Order shall not be construed to that effect.
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 9 61-905.
ORDER
IT IS THEREFORE ORDERED that Idaho Power Company be, and the same is hereby
authorized, during the period from April 1 , 2004 to and including March 31 , 2005 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 , 2006. 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
ORDER NO. 29461
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 ofIdaho 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.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days ofthe 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 9 61-626.
ORDER NO. 29461
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 31 s:t
day of March 2004.
ATTEST:
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Commission Secretary
O:IPCEO406 jh
ORDER NO. 29461
MARSHA H. SMITH, COMMISSIONER