20050506Final Order No 29778.pdf

Office of the Secretary
Service Date
May 6, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR AN ORDER
AUTHORIZING UP TO $300,000,000
AGGREGATE PRINCIPAL AMOUNT AT ANY
ONE TIME OUTSTANDING SHORT-TERMBORROWINGS
CASE NO. IPC-05-
ORDER NO. 29778
On March 28 2005 , the Commission issued Order No. 29736 approving Idaho Power
Company s request for authority to incur up to $300 000 000 aggregate principal amount of
short-term debt at anyone time outstanding for a period of five years beginning April 1 , 2005
and ending March 31 , 2010. Because the five-year authorization period is longer than the two-
year period granted with prior authorities, the Commission adopted a condition providing that the
five-year authority remains in place so long as bond ratings remain investment grade (the
Condition
).
On April 14, 2005, Idaho Power filed a Request for Clarification addressing this
Condition.
THE REQUEST FOR CLARIFICATION
Idaho Power requests clarification of the second ordering paragraph on page 3 of the
Order, which states:
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.
According to Idaho Power, this Condition, as written, could increase the underwriters' risk
analysis and require issuance restrictions or limitations. Therefore, Idaho Power requests
additional language allowing a 364-day continuance of the initial authority following the
downgrade. This will prevent the authority from immediately terminating, allow the debt to
mature over the next 364 days and allow the Company to make the required filings with the
Commission.
DISCUSSION
Having reviewed our prior Order No. 29736 and the Company s request, we clarify
our prior Order. As described above, Idaho Power is concerned about the second ordering
ORDER NO. 29778
paragraph set out above. The ordering language below is added to describe what will happen in
the event that Idaho Power s first mortgage bond ratings fall below investment grade. Should
such a downgrade occur, Idaho Power s authority set out in Order No. 29736 will not
automatically terminate provided that Idaho Power complies with the conditions and process set
forth below.
ORDER
IT IS HEREBY ORDERED that Idaho Power s Request for Clarification is granted.
IT IS FURTHER ORDERED that if the Company s first mortgage bond ratings fall
below the investment grade levels referenced in said ordering paragraph (the "Downgrade
Idaho Power s authority to incur short-term borrowings and issue commercial paper as provided
in this Order will not terminate, but instead such authority will continue for a period of 364 days
from the date of the Downgrade (the "Continued Authorization Period") provided that Idaho
Power:
(1) Promptly notifies the Commission in writing of the Downgrade; and
(2) Files a supplemental application with the Commission within seven (7)
days after the Downgrade requesting a supplemental order
Supplemental Order ) authorizing Idaho Power to continue to incur
short-term borrowing and issue commercial paper as provided in the
Order, notwithstanding the Downgrade. Until Idaho Power tecdvt;s the;
Supplemental Order, any short-term borrowings incurred or commercial
paper issued by Idaho Power during the Continued Authorization Period
will become due or mature no later than the final date of the Continued
Authorization Period.
IT IS FURTHER ORDERED that all other terms and conditions in Order No. 29736
remain in effect.
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 Case No. 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 99 61-626 and 62-619.
ORDER NO. 29778
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this io~
day of May 2005.
MARSHA H. SMITH, COMMISSIONER
SEN, COMMISSIONER
ATTEST:
Po~
~~j
Barbara Barrows
Assistant Commission Secretary
0: IPCEO504 kdp2
ORDER NO. 29778