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ALJ/DUG/jt2 Mailed 5/12/2006
Decision 06-05-015 May 11, 2006
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of SAN DIEGO GAS & ELECTRIC COMPANY for Authorization to: (1) Obtain Long-Term Debt Capital Not to Exceed the Equivalent of U.S. $800,000,000; (2) Guarantee the Obligations of Others with Respect to the Issuance of Certain Tax-exempt Securities; (3) Include Certain Features in Debt Securities or Enter into Certain Derivative Transactions to Lower Cost of Money; (4) Obtain an Exemption From the Competitive Bidding Rule; (5) Enter Into Interest Rate Swaps, Caps, Collars and/or Currency Exchange Contracts; (6) Issue and Sell Not More than U.S. $200,000,000 Par or Stated Value of Preferred or Preference Stock; and (7) Take All Other Necessary, Related Actions. (U 904-M) |
Application 06-02-017 (Filed February 14, 2006) |
OPINION GRANTING AUTHORITY
TO ISSUE DEBT AND PREFERRED STOCK SECURITIES
Table of Contents
Title Page
OPINION GRANTING AUTHORITY TO ISSUE DEBT AND PREFERRED STOCK SECURITIES 11
IV. Types of Debt Securities 44
A. Fall-away Mortgage Bonds 55
C. Accounts Receivable Financing 88
D. Very Long-Lived Securities 1313
VIII. Competitive Bidding Rule 1616
IX. Financial Information 1717
X. California Environmental Quality Act (CEQA) 1717
OPINION GRANTING AUTHORITY
TO ISSUE DEBT AND PREFERRED STOCK SECURITIES
This decision grants San Diego Gas & Electric Company (SDG&E) the authority requested in Application (A.) 06-02-017. The proceeding is closed.
On February 14, 2006, SDG&E filed A.06-02-017 for authority to issue various debt securities not to exceed $800,000,000 in aggregate principal and $200,000,000 Par or Stated Value of Preferred or Preference Stock. SDG&E requests authority, pursuant to Articles 5 and 6 of Chapter 4, Part 1, Division 1 of the California Public Utilities Code and Rules 33 and 34 of the Commission's Rules of Practice and Procedure for the following:
To issue first mortgage bonds, debentures, overseas indebtedness, foreign securities, medium-term notes, accounts receivable financing, and to enter into long-term loans (collectively, Debt Securities), in an aggregate principal amount not to exceed $800,000,000 of debt capital, in addition to previously-authorized amounts. SDG&E proposes that its management or board of directors will determine the principal amount and the terms and conditions of each issue of Debt Securities according to market conditions at the time of sale;
To issue certain tax-exempt Debt Securities in order to guarantee the obligations of others;
To include certain features in SDG&E Debt Securities or to enter into certain derivative transactions related to underlying debt in order to improve the terms and conditions of SDG&E's debt portfolio and with the goal of lowering SDG&E's cost of money for the benefit of ratepayers;
To hedge, when appropriate, planned issuances of Debt Securities, Preferred and Preference Stock;
To issue and sell not more than U.S. $200,000,000 stated value of preferred or preference stock; and
To obtain certain exemptions from the Commission's competitive-bidding rule.
Applicant also requests that the additional features associated with the Debt Securities, Preferred and Preference Stock requested in this Application be similarly authorized for the unused authority previously granted in Commission Decisions (D.) 04-01-009 and D.93-09-069.
The authorization requested in this application is in addition to the unused authority previously granted in Commission D.04-01-009 and D.93-09-069.