6. Fee

Whenever the Commission authorizes a utility to issue debt and preferred stock, the Commission is required to charge and collect a fee pursuant to §§ 1904(b) and 1904.1. A fee is not applicable on any such issues used to guarantee, take over, refund, discharge, or retire any stock, bond, note, or other evidence of indebtedness on which a fee has already been paid to the Commission. (§ 1904.1.)

Valencia expects to use $11 million of its $30 million request for new Debt Instruments to retire senior secured notes due June 15, 2009, which is not subject to a fee. Therefore, Valencia should pay a fee on only $19 million of its new $30 million debt instruments ($30 million less $11 million to be used to retire existing debt). If Valencia actually uses any of the $11 million for purposes other than the retirement or refund of indebtedness previously issued, it shall notify the Commission in writing, pay the corresponding fee, and identify in its next Debt Instruments report after issuance how it used the $11 million of long-term debt earmarked to replace existing long-term debt.

Valencia shall remit the required $15,500 fee to the Commission's Fiscal Office.³ The authority granted by this decision shall not become effective until Valencia remits the $15,500 fee to the Commission's Fiscal Office.

³ The fee is assessed on $19 million of authorized long-term Debt Instruments as follows: ($2 times $1,000,000/$1,000) plus ($1 times $9,000,000/$1,000) plus ($0.5 times $9,000,000/$1,000) equals $15,500.