20031105Final Order No 29374.pdf

Office of the Secretary
Service Date
November 5 , 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
ACIFICORP FOR SHORT -TERM DEBT
AUTHORITY OF $1.5 BILLION. CASE NO. PAC-O3-
ORDER NO. 29374
On October 10, 2003 , PacifiCorp filed an Application with the Idaho Public Utilities
Commission for an Order authorizing PacifiCorp to borrow not more than $1.5 billion in short-
term debt aggregate principal amount through April 30, 2006. If granted, the authority would
extend the short-term debt authority granted in Order Nos. 27457, 28346 and 28970 that will
expire on April 30, 2004. The other terms and conditions of the previous debt authority would
not be changed. The Commission, having fully considered the Application, attached exhibits, its
files and records relating to this Application, and the applicable laws and rules, grants the
Application.
FINDINGS OF FACT
PacifiCorp was incorporated under Oregon law in August 1987 for the purpose of
facilitating consummation of a merger with Utah Power & Light Company, a Utah corporation
and changing the state of incorporation of PacifiCorp from Maine to Oregon. PacifiCorp uses
the assumed business names of Pacific Power & Light Company and Utah Power & Light
Company within their respective service territories located in the states of California, Idaho
Oregon, Utah, Washington and Wyoming.
PacifiCorp proposes to enter into Agreements and Other Arrangements and to issue
Paper through April 30, 2006 on the terms and conditions specified in Order Nos. 27457, 28346
and 28970. The type of issue (promissory notes, revolving credit, commercial paper) and the
terms of issue including interest rate will be determined at the date of issue. The short-term debt
may include (1) unsecured short-term promissory notes to and borrow from U.S. or foreign
commercial banks (or their affiliates) under the following facilities: (a) not more than $1.5 billion
in aggregate principal amount outstanding at anyone time under one or more revolving credit
agreements (Agreements); and (b) not more than $1.5 billion in aggregate principal amount
ORDER NO. 29374
outstanding at anyone time under other borrowing arrangements (Other Arrangements); and (2)
commercial paper (Paper) in the u.S. or overseas in an aggregate principal amount not to exceed
$1.5 billion outstanding at anyone time; provided, further, that the aggregate principal amounts
outstanding under the Agreements, Other Arrangements and Paper not exceed $1.5 billion at any
one time.
Proceeds from the short-term borrowings will be used for the improvement or
maintenance of service or facilities, construction purposes, acquisition of utility property, the
discharge or lawful refunding of obligations which were incurred for utility purposes, or the
reimbursement of the Company s treasury for funds used for the foregoing purposes. All of these
purposes as permitted under Idaho Code 9 61-901.
PacifiCorp has paid the fees required by Idaho Code 9 61-905.
CONCLUSIONS OF LAW
PacifiCorp 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. 961-901 et seq.and the Application reasonably conforms to Rules 141-
150 ofthe Commission s Rules of Procedure (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 of Idaho 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 PacifiCorp 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 an Order authorizing the proposed financing 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.
The application should be approved.
ORDER NO. 29374
ORDER
IT IS THEREFORE ORDERED that PacifiCorp s Application for authority to:
1) Issue unsecured short-term promissory notes to and borrow from u.S. or foreign
commercial banks (or their affiliates) under:
(a) not more than $1.5 billion in aggregate principal amount outstanding at
anyone time under one or more revolving credit agreements; and
(b) not more than $1.5 billion in aggregate principal amount outstanding at
anyone time under other borrowing arrangements; and
(2) Issue and sell its commercial paper in the u.S. or overseas in an aggregate
principal amount not to exceed $1.5 billion outstanding at anyone time; provided, further, that
the aggregate principal amounts outstanding under the Agreements, Other Arrangements and
Paper not exceed $1.5 billion at anyone time, is granted.
IT IS FURTHER ORDERED that the Applicant is hereby authorized to issue the
Securities in the manner and for the purposes described in the Application with continuing
authority to refund, extend, renew or replace the same without further order of the Commission
provided that the fees, interest rates and expenses charged or incurred in connection with any
transactions entered into under the authority of this order, and any refunding, extension, renewal
or replacement thereof, are competitive with market prices for similar transactions. PacifiCorp
shall informally notify the Staff as soon as practical prior to the issuance of the terms and
conditions of the issue. This informational filing should be made seven (7) days, or as soon as
possible, prior to the issuance.
IT IS FURTHER ORDERED that such authorization remains effective through April
, 2006.
IT IS FURTHER ORDERED that regulatory treatment of any gross-up provisions
continue to be deferred until the situation occurs.
IT IS FURTHER ORDERED that this authorization is without prejudice to the
regulatory authority of this Commission with respect to rates, service, accounts, valuation
estimates, or determination of costs, or any other matter that may come before this Commission
pursuant to this jurisdiction and authority as provided by law.
IT IS FURTHER ORDERED that nothing in this Order and no provision of Chapter
, Title 61 , Idaho Code, or any act or deed done or performed in connection with this Order shall
ORDER NO. 29374
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 Chapter 9, Title 61
Idaho Code.
IT IS FURTHER ORDERED that PacifiCorp shall file, as they become available, the
following:
a. The "Report of Securities Issued" required by 18 CPR 34.10;
b. Verified copies of any Agreement entered into pursuant to this Order;
and
c. An annual verified statement setting forth in reasonable detail the
disposition of the proceeds during each year of the Agreements.
IT IS FURTHER ORDERED that issuance of this Order does not constitute acceptance
of PacifiCorp s exhibits or other material accompanying the Application for any purpose other than
the issuance of this Order.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory orders previously issued in this Case No. P AC-03-
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 or in interlocutory orders previously issued in this Case
No. P AC- E-03-11. Within seven (7) days after any person has petitioned for reconsideration, any
other person may cross-petition for reconsideration in response to issues raised in the petition for
reconsideration. See Idaho Code 9 61-626.
ORDER NO. 29374
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this Sf'-.
day of November 2003.
1fIU-- PAUL KJEL . ER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~tD~
D. Jewell
Commission Secretary
O:P ACE0311 sw
ORDER NO. 29374