ORDER NO. 96-036

ENTERED FEB 13 1996

THIS IS AN ELECTRONIC COPY

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UF 4075 (1)



In the Matter of the Application of WASHINGTON WATER POWER for an Order Authorizing the Issuance and Sale of up to and Including 750,000 Additional Shares of Common Stock, no par value, Under the Company's Periodic Offering Program. )

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) SUPPLEMENTAL ORDER

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DISPOSITION: APPLICATION GRANTED WITH CONDITIONS

On December 6, 1995, Washington Water Power (Washington or Company) filed a supplemental application in this docket to extend its authority to issue no more than 750,000 shares of stock through January 13, 1998, or when the merger between it and the Sierra Pacific Power Co. is completed, whichever is first.

The common stock is being issued under a Periodic Offering Program which allows Washington to issue smaller amounts of common stock at any one time, and at less cost than a general underwriting. Programs of this sort have become an inexpensive vehicle for issuing common stock.

Washington's original authority in this matter was granted in Order No. 92-1131. The authority to issue common stock expired December 31, 1995. The current application is being heard outside the 30-day statutory limit because of a processing error which occurred at the time of filing.

On January 30, 1996, the Company amended its application with a more definitive statement on the use of proceeds. Washington will use proceeds from the sale of securities for the acquisition of utility property or the construction, extension or improvement of utility facilities; the improvement or maintenance of service; the discharge or lawful refunding of its obligations (such as relatively higher-coupon debt and maturing debt previously authorized by the Commission); and, refunding the company's treasury expended on utility purposes. To the extent the company's treasury is refunded, the original expenditures, or their precedents, were made for purposes described by ORS 757.415(1)(a), (b), or (e). To the extent that obligations are discharged or refunded, those obligations or their precedents were used for purposes described by ORS 757.415(1)(a), (b), or (e). Washington will file a new financing application, pursuant to ORS 757.415, when it completes its proposed merger with Sierra Pacific Power.

At its February 6, 1996, public meeting, the Commission reviewed the staff recommendation and approved the supplemental application.

ORDER

IT IS ORDERED that:

The supplemental application of Washington Water Power Company to extend its authority to issue common and sell no more than 750,000 shares of common stock under a Periodic Offering Program through January 13, 1998, or when the merger between it and the Sierra Pacific Power Company is completed, whichever is first, is granted, subject to the following conditions:

  1. Washington shall maintain investment-grade bond ratings on its senior secured debt from at least two nationally recognized bond rating agencies if it does not merge with Sierra Pacific Power.
  1. Washington shall file an annual report of securities issued and disposition of net proceeds statement.
  1. Commission Order No. 92-1131 shall, to the extent not specifically affected by this order, remain in full force and effect.


 

Made, entered, and effective ________________________.

BY THE COMMISSION:

______________________________

Judy C. Colvin

Commission Secretary

 

A party may request rehearing or reconsideration of this order within 60 days pursuant to ORS 756.561. A party may appeal this order pursuant to ORS 756.580.