20050329Final Order No 29736.pdf

Office of the Secretary
Service Date
March 29, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMP ANY FOR AN ORDER
AUTHORIZING UP TO $300,000,000
AGGREGATE PRINCIPAL AMOUNT AT ANY
ONE TIME OUTSTANDING SHORT-TERM BORROWINGS
CASE NO. IPC-05-
ORDER NO. 29736
On February 14, 2005 , Idaho Power Company filed an Application requesting
authority to incur up to $300 000 000 aggregate principal amount of short-term debt at anyone
time outstanding. The authorization period requested is five years beginning April 1 , 2005 and
ending March 31 , 2010. Having fully considered the Application and the attached exhibits, the
Commission issues this Order approving the Application as set forth in greater detail below.
THE APPLICATION
Idaho Power submits this Application pursuant to Idaho Code ~ 61-901 et seq. and
procedural Rules 141-150. IDAPA 31.01.01.141-150. Idaho Power requests authority over a
five-year period to incur not more than $300 000 000 in short-term indebtedness at anyone time.
Because this five-year authorization period is longer than the two-year periods provided in
previous authorizations, Idaho Power has included a condition where the five-year authority
remains in place so long as bond ratings remain investment grade (BBB- or higher by Standard
& Poor s Rating Service and Baa3 or higher by Moody s Investors' Service , Inc.
The securities will consist of loans 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 LIBOR , 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 with a
maximum maturity of up to five years. In no event will the varying maturities have a final
LIBOR: London Interbank Offered Rates.
ORDER NO. 29736
maturity beyond March 31 , 2010. 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
$200 000, an annual fee estimated at $30 000, and a facility fee as a percentage of each bank'
commitment. It is expected that commercial paper dealers or agents will sell the paper to receive
a commission not to exceed 1/8th of 1 percent of the principal amount of each note.
The funds will be obtained for temporary, interim capital requirements for the
following purposes: acquisition or construction of new plant along with the improvement or
maintenance of existing generation, distribution, transmission and general plant; refunding of
financing instruments; or other corporate purposes.
ST AFF REVIEW
Staff recommended approval of Idaho Power s Application.Staff accepts the
proposed requirement to maintain investment grade ratings as a condition of the five-year
authority. In addition, Staff recommended that Idaho Power submit quarterly debt reports
including all credit rating agency reports related to Idaho Power and IDACORP issued during the
quarter. Idaho Power has accepted these requirements.
FINDINGS OF FACT
Idaho Power was incorporated on May 6, 1915 and migrated its state of incorporation
to the State of Idaho on June 30 1989. Idaho Power is duly qualified to do business in the State
of Idaho and its principal place of business is located in Boise, Idaho.
Based on the representations in the Application, we find that the funds obtained
through the short-term indebtedness will be used -by Idaho Power for the acquisition or
construction of new plant along with the improvement or maintenance of existing generation
distribution, transmission and general plant; refunding of financing instruments; and other
corporate purposes.
CONCLUSIONS OF LAW
Idaho Power is an electric corporation within the definition of Idaho Code ~ 61-119
and is a public utility within the definition of Idaho Code ~ 61-129. The Public Utilities
Commission has jurisdiction over this matter pursuant to Title 61, Idaho Code, Chapters 1 and 9
and specifically Idaho Code ~~ 61-119 61-129 61-901 , and 61-902.
ORDER NO. 29736
After examining the Application and Staff s comments, the Commission finds that an
evidentiary hearing in this matter is not required and would serve no public purpose.
The Commission further finds that the Application for authority to incur up
$300 000 000 aggregate principal amount at anyone time outstanding of short-term borrowing is
for a lawful purpose, is within Idaho Power s corporate powers, and is generally compatible with
the public interest. The Commission further finds that the method of issuance is proper.
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 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 this Order 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.
ORDER
IT IS HEREBY ORDERED that Idaho Power is authorized, during the period from
April 1 , 2005 to and including March 31 , 2010 to make short-term borrowings and to issue
unsecured notes, for the purposes herein set forth, in an amount not to exceed $300 000 000
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 , 2010. 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 $300 000 000 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 such authority exists only as long as the
Company s bond ratings remain investment grade (BBB- or higher by Standard & Poor s Rating
Service and Baa3 or higher by Moody s Investors' Service , Inc.
IT IS FURTHER ORDERED that Idaho Power file with the Commission on a
quarterly basis debt reports including any debt authorized by this Order and all credit rating
agency reports related to Idaho Power Company and IDACORP issued during the quarter.
ORDER NO. 29736
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 nothing in this Order or any act or deed performed
in connection with this Order 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 this Order.
IT IS FURTHER ORDERED that this authorization is without prejudice to the
regulatory authority of this Commission with respect to rates, service, accounts, evaluation
estimates or determination of costs or any other matter which may come before the Commission
pursuant to its jurisdiction and authority as provided by law.
IT IS FURTHER ORDERED that the issuance of this Order does not constitute
acceptance of Idaho Power s exhibits or other material accompanying this Application for any
purpose other than the issuance of this Order.
THIS IS A FINAL ORDER. Any person interested in the Order (or in issues decided
by this Order) 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 and in this case IPC-05-4. Within
seven (7) days after any person has petitioned for reconsideration, any other person may cross-
petition for reconsideration. See Idaho Code ~ ~ 61-626 and 62-619.
ORDER NO. 29736
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
;( ~~
day of March 2005.
AUL KJEL~~NDER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
SEN, COMMISSIONER
ATTEST:
O:IPCEO504 kdp
ORDER NO. 29736