ORDER NO. 96-038
ENTERED FEB 13 1996
THIS IS AN ELECTRONIC COPY
BEFORE THE PUBLIC UTILITY COMMISSION
OF OREGON
UF 4115 (1)
| In the Matter of the Application of WASHINGTON WATER POWER for an Order Authorizing the Issuance and Sale From Time to Time of up to and Including (1) $250,000,000 of its First Mortgage Bonds to be Issued in the Form of Security Medium-Term Notes, Series B; and (2) 4,000,000 Additional Shares of Common Stock, No Par Value, Under its Dividend Reinvestment and Stock Purchase Plan. | )
) ) SUPPLEMENTAL ORDER ) ) ) |
DISPOSITION: APPLICATION GRANTED WITH CONDITIONS
On December 6, 1995, Washington Water Power (Washington or
Company) filed an application to extend its authority to issue no
more than $250,000,000 of secured medium-term notes and 4,000,000
shares of common stock. Washington has issued approximately $116
million of notes and 2.2 million shares of stock under it
original authority in this docket.
Under Commission Order No. 94-084, authority to issue debt expired
December 31, 1995, and authority to issue common stock expired January 13, 1996. The current application is being heard outside the 30-day statutory limit because of a processing error which occurred at the time of filing. Washington requests that its authority to issue either medium-term notes or common stock be extended through January 13, 1998, or when the merger between it and the Sierra Pacific Power Co. is completed, whichever is first.
Medium-term notes have become one of the primary sources of debt finance for public utilities, and provide relatively quick access to debt capital. The common stock is being issued under a dividend reinvestment plan (DRIP). Washington's DRIP is generally similar to others in the industry, and allows equity investors to reinvest their dividends in the company without high underwriting costs or stock brokerage fees. Consequently, DRIPs are an inexpensive source of equity capital for utilities.
On January 25, 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 with conditions.
ORDER
IT IS ORDERED that:
The supplemental application of Washington Water Power Company
to extend its authority to issue no more than $250,000,000 of
secured medium-term notes and 4,000,000 shares of common stock
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:
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.