SDG&E indicates that it will apply the net proceeds from the proposed debt and preferred capital financings to, or to reimburse its treasury for monies expended or to be expended for: (i) the expansion and betterment of utility plant and; (ii) the discharge of its indebtedness or preferred stock retired or to be retired at maturity and through sinking fund payments, redemption, prepayment (including premiums, if any, required in connection with redemption or prepayment), repurchase or otherwise.
Pub. Util. Code § 817(d) allows a public utility to issue stock or evidences of indebtedness payable at a period of more than 12 months for the discharge or lawful refunding of its obligations.
Pursuant to Pub. Util. Code § 818, we will approve SDG&E's proposed debt and equity securities, the proceeds of which are to be used to retire existing long-term debt and equity securities, and for capital expenditures.
Pursuant to Pub. Util. Code § 851, we will allow SDG&E to encumber its property whenever such encumbrance serves to secure the debt authorized herein.
We will authorize SDG&E's proposed debt securities in the aggregate principal amount of $800,000,000 and Preferred or Preference Stock in an aggregate amount of $200,000,000.