20020808_230.pdf

TO:
FROM:
DATE:
RE:
DECISION MEMORANDUM
COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LA W
LOUANN WESTERFIELD
TONY A CLARK
DAVE SCHUNKE
RANDY LOBB
TERRI CARLOCK
LYNN ANDERSON
GENE FADNESS
WORKING FILE
DON HOWELL
AUGUST 6, 2002
IDAHO POWER'S REQUEST TO AMEND ORDER NO. 28991 TO
TEMPORARILY INCREASE ITS SHORT-TERM DEBT BORROWING
FROM $350 MILLION TO $400 MILLION FOR THE PERIOD OF
SEPTEMBER 1, 2002 TO OCTOBER 15, 2002, CASE NO. IPC-02-
On August 1 , 2002, Idaho Power Company filed an Application seeking expedited
review of the Company s request to increase the authorized amount of its short-term debt in
Order No. 28991 issued March 28, 2002. More specifically, the Company requested that Order
No. 28991 be amended to increase the short-term debt of the Company from $350 million to
$400 million aggregate principal at anyone time outstanding for a period from September 1
2002 to October 15, 2002. Idaho Power is a regulated electric utility that provides service to
approximately 370 000 customers in southern Idaho and eastern Oregon.
THE APPLICATION
The Company is planning to issue a new series of floating rate notes in the aggregate
principal amount of $100 million. The Company proposes to issue the notes on September 3
2002, and these rates will have a term of not more than twelve (12) months. Because of the
DECISION MEMORANDUM
timing of the issuance and the corresponding redemption of other outstanding short-term notes
the issuance of the notes is projected to temporarily raise Idaho Power s aggregate principal
amount of short-term borrowing on September 3, 2002, to over $350 million. In other words
Idaho Power would exceed its authorized short-term borrowing by "a mere matter of hours or
even minutes.Application at 2. Consequently, the Company requests that the Commission
temporarily increase its short-term borrowing authority from $350 million to $400 million
aggregate principal amount at anyone time outstanding for the period of September 1 through
October 15 2002.
Amending Order No.28991 to increase the Company s short-term borrowing
authority for the requested period of time will "provide sufficient latitude to (Idaho Power J to
accomplish the issuance of the notes and the redemption of existing notes on September 3 2002
and provide a buffer period after the issuance and redemption to assure Applicant's compliance
with the short-term borrowing limitation set forth" in Order No. 28991. Application at 3. After
October 15, 2002, the authorized aggregate principal amount of short-term borrowing for Idaho
Power at anyone time outstanding would revert to $350 million.
The Application recites that Idaho Power will publish a notice of its requested
increase in short-term borrowing in those newspapers of general circulation located in Idaho
Power s service area pursuant to the Commission s Rule 141.08, IDAPA 31.01.01.141.08. Idaho
Power also indicates in its transmittal letter that it will submit the $1 000 application fee to the
Commission prior to the decision meeting scheduled for August 8, 2002.
Due to the timing requirement of Idaho Power s proposed issuance of the notes on
September 3 , the Company has requested that the Commission rule on this matter expeditiously.
The Company further states that all other terms and conditions of Order No. 28991 shall remain
in full force and effect and continue to bind Idaho Power.
STAFF RECOMMENDATION
Based on the reasons set forth in the Company s Application, the Staff believes that it
is appropriate for the Commission to issue an Order approving the temporary increase in short-
term borrowing authority from $350 million to $400 million for the periods from September 1
2002 to October 15 , 2002. Staff believes that the Application has met or will meet the statutory
requirements of Idaho Code ~~ 61-902 et seq. and the Commission s Rules, IDAPA
31.01.01.141-146.
DECISION MEMORANDUM
COMMISSION DECISION
Does the Commission grant the Company s Application to amend Order No. 28991 to
grant Idaho Power a temporary increase in its short-term borrowing authority?
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Don Howell
Vld/M:IPCEO201
DECISION MEMORANDUM