NEW ENGLAND POWER COMPANY
ORDER No. 25, 989
DE 16-844
New Hampshire Public Utilities Commission
February 16, 2017
Petition
for Authority to Issue Long-Term Debt
Order
Approving Petition for Authority to Issue up to $800 Million
of Long-Term Debt
Martin
P. Honigberg Chairman
In this
order, the Commission grants New England Power Company
authority to issue up to $800 million of long-term debt
securities over a three-year period. The Commission finds
that the debt is consistent with the public good and approves
the Petition as proposed.
I.
BACKGROUND
On
November 3, 2016, pursuant to RSA 369:1, New England Power
Company d/b/a National Grid ("NEP" or "the
Company") filed a Petition for Authority to Issue Long
Term Debt Securities ("Petition"). NEP's filing
included testimony, information required by Puc Form F-4,
Authority to Issue Securities, and a request for waivers of
N.H. Code Admin. Rules Puc 308.12(b) (7), (8), and (9). On
December 28, 2016, Staff requested additional information
regarding the interest rates described in the Petition and
the requested waivers. NEP provided a response on January 5,
2017. On January 25, 2017, Staff issued a memorandum to the
Commission recommending approval of the Petition and the
requested waivers. The Petition and subsequent docket
filings, other than any information for which confidential
treatment is requested of or granted by the Commission, are
posted to the Commission's website at
http://www.puc.nh.gov/Regulatory/Docketbk/2016/16-844.html.
A.
New England Power Company
In its
Petition, NEP states that it seeks authority to take on new
long-term debt not to exceed an aggregate principal amount of
$800 million for a period of three years beginning on the
date of the Commission's approval, plus an option for a
two-year extension. The Company states that it will use the
proceeds for one or more of the following purposes:
refinancing short-term debt, financing NEP's capital
needs, construction of utility plant and properties,
reimbursing the treasury, funding maturing debt, and other
general corporate purposes including restructuring NEP's
capitalization. The Company also requests authorization to
choose the type of debt to issue, which may include
medium-term and long-term notes, bonds, debentures, revolving
credit loans, and bank loans. According to the Petition, the
terms to maturity will be no shorter than one year and no
longer than thirty years. Further, NEP states that it...