950519.docx

DECISION MEMORANDUM
TO:COMMISSIONER NELSON
COMMISSIONER SMITH
COMMISSIONER HANSEN
MYRNA WALTERS
STEPHANIE MILLER
DAVID SCHUNKE
DONALD HOWELL
WELDON STUTZMAN
BEVERLY BARKER
GARY RICHARDSON
TONYA CLARK
WORKING FILE
FROM:TERRI CARLOCK
DATE:MAY 19, 1995
RE:PACIFICORP'S REQUEST FOR AUTHORITY TO ISSUE UP TO $125,000,000 OF POLLUTION CONTROL REVENUE BONDS;
PAC-S-95-2.
RECOMMEND:  APPROVAL
PacifiCorp requests authority to issue up to $125,000,000 aggregate principal amount of pollution control revenue bonds with various counties.  PacifiCorp also requests authority to enter into credit enhancement arrangements to secure the bonds and lower the overall cost.  
The interest rate on the bonds will vary depending on the pricing mode.  Approximate rates for various modes at April 17, 1995 include: daily - 4.0%, weekly - 4.15%, monthly - 4.2%, and long-term with credit enhancement - 6.0%.  Each credit enhancement would be expected to last for three years with a fee up to 0.75% annually.  The underwriting fee is not expected to exceed 1.25% with an annual remarketing fee (if applicable) up to 0.125%.
The primary purpose of the pollution control bonds is to finance qualifying pollution control facilities at the lowest tax-free rate.  The estimated expenses of $4,379,500 are shown on the following page.
ESTIMATED EXPENSES
Underwriters' fee
$   1,562,500
Regulatory agency fees
1,500
Issuer fees
1,000,000
Trustee fees
50,000
Company’s counsel fees
100,000
Underwriters' counsel fees
150,000
Bond counsel fees
150,000
Accountants' fees
50,000
Consulting fees
37,500
Credit enhancement fees
1,000,000
Rating agency fees
100,000
Printing fees
70,000
Miscellaneous Expenses
108,000
TOTAL
$   4,379,500
STAFF RECOMMENDATION
Staff recommends approval of the application.  
COMMISSION DECISION
Should the application be approved?
________________________
Terri Carlock
pacs952.dm/tcarloc