WATER/RSK/KOK/DLW/RHG
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
DIVISION OF WATER AND AUDITS RESOLUTION W-4886
UTILITY AUDIT, FINANCE AND October 20, 2011
COMPLIANCE BRANCH
RESOLUTION W-4886. RESOLUTION GRANTING LUKINS BROTHERS WATER COMPANY, INC. AUTHORITY TO BORROW $2,000,000, FROM FINANCIAL INSTITUTIONS; TO ENCUMBER ITS ASSETS IN CONNECTION WITH THE LOAN; AND TO INSTITUTE A SURCHARGE TO PAY OFF THE LOAN.
By Advice Letter No. 43 filed on February 24, 2011.
SUMMARY
This Resolution grants Lukins Brothers Water Company, Inc. (LBWC) the authority requested in its Advice Letter (AL) 43.
LBWC requests authority, pursuant to §§ 816 through 851 of the Public Utilities Code, to: 1
1. Borrow $2,000,000, from La Quinta Capital, LLC (LQC) or other financial institutions;
2. Use the loan proceeds to finance any loan issuance costs and Phase 1 and part of Phase 2 of its construction project establishing new water mains and fire flow for its currently inadequate system;
3. Establish a surcharge to make payments of principal and interest on the loan and accumulate a sinking fund reserve equal to one year's debt service; and
4. Encumber utility assets in connection with the loan.
1 All statutory references are to the Public Utilities Code unless otherwise indicated.
