20050506Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:MAY 6, 2005
RE:P ACIFICORP'S AUTHORITY REQUEST TO ISSUE UP TO 50 000,000
COMMON SHARES; CASE NO. P AC-05-
On April 11 , 2005, PacifiCorp filed an Application requesting authority to issue up to
000 000 shares of Common Stock to its parent, PacifiCorp Holdings, Inc. Order No. 29144
issued on October 30, 2002 in Case No. P AC-02-, granted authority for PacifiCorp to issue
up to 50 000 000 shares of Common Stock. To date 14 851,485 shares have been issued. This
request (P AC-05-4) would incorporate the remaining shares currently authorized under Order
No. 29144 with this requested authority, resulting in total authority to issue up to 50 000 000
shares of Common Stock. Other terms and conditions of Order No. 29144 would remain
effective for this increased authority.
The purpose of the requested authority is to allow PacifiCorp to maintain or improve
access to capital at reasonable terms; maintain proper capitalization ratios; acquire or construct
new plant along with the improvement or maintenance of existing generation, distribution
transmission and general plant to provide or improve utility services; and for other corporate
purposes.
STAFF RECOMMENDATION
Staff recommends approval of the requested authority to issue up to 50 000 000 shares of
Common Stock. The current capital structure consists of 54.1 % debt, 0.6% preferred and 45.3%
common equity. The proforma capital structure if both this equity authority and the debt
authority (PAC-05-5) are approved is 56.1 % debt, 0.5% preferred and 43.4% common equity.
DECISION MEMORANDUM - 1 -MAY 6, 2005
COMMISSION DECISION
Should the requested authority to issue up to 50 000 000 shares of Common Stock to its
parent, PacifiCorp Holdings, Inc. be approved?
TC\pace054common. DM. 5.
DECISION MEMORANDUM
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MAY 6, 2005