20040329_796.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:MARCH 19, 2004
RE:IDAHO POWER COMPANY'S SHORT-TERM BORROWING REQUEST
OF. $250 MILLION - CASE NO. IPC-04-
On February 26 2004, Idaho Power Company (Idaho Power) filed an Application
requesting authority to incur up to $250 000 000 aggregate principal amount at anyone time of
short-term debt. An order is requested by March 31 2004.
The securities will consist of loans issued as public or private placements in the form of
unsecured notes, unsecured promissory notes, commercial paper or other indebtedness. The
terms and interest rate for each issue will be determined at the time of issuance. The debt
issuance(s) may be at a fixed or variable interest rate based on LIBOR, the applicable prime rate
or other established rate and may be based on Idaho Power s first mortgage bond credit rating.
The length of the issuance series may also vary with the borrowing(s) issued during the one-year
period from April 1 , 3004 through March 31 , 2005. The varying maturities will not be longer
than one year with the final maturity not beyond March 31 , 2005. Each note will have a fixed
maturity with no provision for automatic roll over.
Fees will be charged by a syndicated facility for credit line arrangement estimated at
$250 000, an annual fee estimated at $30 000, and a facility fee as a percentage of each bank'
commitment. Commercial paper dealers or agents will charge a commission not to exceed 1/8 of
1 percent of the principal amount of each note.
The funds will be obtained for temporary, interim capital requirements for the following
purposes: renewal of short-term notes of indebtedness; power supply costs; construction of new
plant along with the upgrade of existing generation, distribution, transmission and general plant;
DECISION MEMORANDUM - 1 -March 19, 2004
retirement of maturing debt; refinancing of certain debt or preferred stock; or other corporate
purposes.
ST AFF RECOMMENDATION
Staffrecommends approval of the $250 million short-term debt authority. Idaho Power
will continue to file its periodic debt reports for review.
COMMISSION DECISION
Should the $250 million short-term debt line be approved?
nm ~cli
Terri Carlock
TC\ipceO426TD.3.19.
DECISION MEMORANDUM - 2 -March 19, 2004